ATO Receipt Requirements 2026: What Evidence Do You Need?
Are you risking thousands in lost deductions because of missing or non-compliant receipts? This guide reveals exactly what the ATO wants, how to keep digital and paper records, and the simple steps to make your tax audit-proof in 2026 and beyond.
Keywords: ATO receipt rules, tax invoice requirements, digital receipts ATO, how long to keep receipts Australia, audit-proof tax records
What You'll Learn
- Exactly what must be on every ATO-accepted receipt (with examples)
- How long to keep receipts and which records need extra care
- Digital vs paper: what the ATO accepts in 2026
- What to do if you lose a receipt
- Common mistakes that trigger audits
- Quick action plan & downloadable checklist
⚠️ Real Audit Story
James claimed $5,200 in work expenses on his 2024 tax return. The ATO audited him 18 months later. He couldn't produce receipts for $3,800 of claims. Result: $3,800 in rejected deductions + penalties + interest = $5,400 bill. All because he didn't keep proper records.
📋 The Essentials (TL;DR)
✅ Keep ALL receipts for every deduction you claim (no receipt = no deduction in an audit)
✅ 5-year rule: Keep records for 5 years after lodging your return
✅ Digital is fine: Scanned/photographed receipts are 100% ATO-compliant
✅ Must include: Date, supplier name, amount, description, GST (if applicable)
✅ Over $82.50? You need a proper tax invoice with ABN
🧾 What Does a "Perfect" Receipt Look Like?
ATO-Compliant Example
Supplier: Officeworks Pty Ltd (ABN 12 345 678 910) Date: 15/07/2025 Description: Printer ink, A4 paper, stapler Total: $124.50 (includes $11.32 GST) Tax Invoice: Yes
Non-Compliant Example
Supplier: Bob's Repairs Date: July 2025 Description: Repairs Total: $500 Tax Invoice: No ABN, no GST shown
Tip: If your receipt looks like the right example, ask the supplier for a proper tax invoice before you pay!
Quick Navigation
Related: How to Organize Receipts for Tax Time | ATO Mileage Rates 2026
ATO Receipt Rules: What Must Be on Every Receipt?
The ATO won't accept "I paid $X for Y" as proof. Here’s exactly what they need to see on every receipt or tax invoice:
The 5 Non-Negotiables
Date of Purchase
The exact date (day/month/year). "March 2026" isn't specific enough.
Supplier Name & ABN
Full business name. For purchases over $82.50 (inc GST), you MUST have their ABN.
Total Amount Paid
Including GST (if applicable). Must match your bank statement.
Description of Purchase
Specific items or services. "Office supplies" isn't enough—need to say "printer ink, paper, staplers."
GST Amount (if you're GST-registered)
Must show GST separately if you're claiming GST credits.
For any expense over $82.50 (including GST), you need a tax invoice—not just a regular receipt. Tax invoices must show:
- Supplier's ABN
- GST amount or "includes GST"
- Words "Tax Invoice" on the document
Under $82.50? A simple receipt is fine (no ABN required).
How Long Do I Keep Receipts in Australia?
5 years minimum
The ATO can audit you up to 5 years after you lodge your return. If you can't produce receipts during an audit, they'll disallow the entire claim—plus penalties.
Example: When Can You Toss 2025-26 Receipts?
• June 30, 2026: Financial year ends
• October 31, 2026: You lodge your 2025-26 tax return
• October 31, 2031: ✅ Safe to delete/shred 2025-26 records
Pro tip: Keep them longer if you're unsure. Storage is cheap—tax penalties aren't.
⚠️ Some Records Need Longer Storage
These must be kept until you sell the asset, then 5 more years:
- →Rental property depreciation schedules: Keep forever (or until sold)
- →Capital gains records: Purchase docs for shares, property, crypto
- →Business asset purchases: Equipment, vehicles, computers
Can I Use Digital Receipts for the ATO? (Yes!)
Great news: The ATO fully accepts digital records. You can toss the paper once you've got a clear digital copy.
✅ ATO-Approved Digital Methods
- →Phone photos: Take a clear pic immediately after purchase
- →Scanned PDFs: Use a scanner app (Adobe Scan, CamScanner, etc.)
- →Email receipts: Forward to yourself or save as PDF
- →Digital invoices: Download from supplier portals
- →Receipt apps: Auto-backup with cloud storage (recommended)
📱 The Smart Way to Go Digital
Snap it NOW: Thermal receipts fade in weeks. Photograph every receipt the moment you get it.
Check readability: Zoom in—can you read every word? If not, retake it.
Back up ASAP: Upload to cloud storage (Google Drive, Dropbox, ReceiptClaimer).
Organize by year: Create folders like "2025-26 Tax Receipts" with subfolders by category.
Keep paper temporarily: Hold originals for 1-2 months until you've confirmed backups work.
⚠️ Digital Receipt Horror Story
Emma kept all her receipts as phone photos. Her phone was stolen in June 2026—right before tax time. She lost 12 months of receipts worth $8,400 in deductions. She had no cloud backup. Don't be Emma.
Lost a Receipt? Here’s What to Do
It happens. Here's your damage control plan:
Option 1: Request a Duplicate
Contact the supplier and ask for a copy of the invoice/receipt. Most businesses can reprint from their system.
Works best for: Recent purchases, big-ticket items, known suppliers
Option 2: Use Bank/Card Statements
Your bank statement can serve as supporting evidence (but not full proof). Show the date, merchant name, and amount. Add a written explanation of what you bought.
Limitation: ATO may still reject without a proper receipt. Use this as last resort.
Option 3: Write a Stat Dec
For small expenses (under $300), you can write a statutory declaration explaining the purchase. Include:
- Date of purchase
- What you bought
- How much you paid
- Why you can't get a receipt
Warning: Overuse this and you'll trigger an audit. Only for genuine lost receipts.
❌ What Won't Work
- ✗"I definitely bought it" — The ATO doesn't care about your word
- ✗Handwritten notes — Not valid unless it's a stat dec
- ✗Screenshots of shopping apps — Need official receipts with ABN
Different Receipts for Different Tax Deductions
Not all receipts look the same. Here's what you need for common deductions:
🚗 Car Expenses
Need: Fuel receipts, service invoices, rego renewal, insurance policy
OR use cents per kilometre method (no receipts needed, just track distance)
🏠 Home Office
Need: Utility bills, internet bills, depreciation schedule for furniture
OR use ATO's fixed rate method (67¢/hour, no receipts but must prove hours worked)
🏘️ Rental Property
Need: Repair invoices (with ABN), property manager fees, council rates, insurance, interest statements
Note: Repairs over $300 MUST have a proper tax invoice with ABN
Planning depreciation or capital works? See our Depreciation Calculator Guide and try the Depreciation Calculator to estimate Division 40/43 claims.
💼 Work-Related
Need: Itemized receipts for tools, uniforms, professional memberships, training courses
Clothing must have employer logo to be deductible (plain black pants don't count)
💝 Donations
Need: Receipt from DGR-registered charity showing your name, date, amount, charity ABN
Under $2? No receipt needed. Over $2? Must have proper receipt.
Common Receipt Mistakes That Trigger ATO Audits
These are the red flags that get the ATO's attention:
❌ Claiming Round Numbers
"Exactly $5,000 in work expenses" looks suspicious. Real expenses are never perfectly round ($4,847.32 looks legit).
❌ Mixing Personal & Business
Your Woolworths receipt shows milk, bread, AND printer paper. You can only claim the printer paper—annotate the receipt to show the split.
❌ No ABN on Large Purchases
You paid a tradie $2,500 cash for repairs. He gave you a handwritten note. That's not valid—you need a proper invoice with his ABN.
❌ Claiming More Than Income
You earned $45K but claimed $15K in work expenses? The ATO will ask questions. Keep it reasonable (typically under 30% of income).
❌ No Cloud Backup
Phone breaks, laptop dies, house floods—if your receipts are in one place, you're one disaster away from losing everything.
Real People, Real Mistakes
🚨 Michael: The Cash Tradie
Claimed: $18,500 in rental property repairs
Problem: Paid tradespeople cash, only got handwritten receipts (no ABN)
ATO result: Disallowed $14,200 in claims (anything over $300 without ABN)
Cost: $5,680 in rejected deductions + $1,200 penalty + $380 interest = $7,260
Lesson: Always insist on proper invoices with ABN for any work over $300.
✅ Lisa: The Organized Landlord
Claimed: $12,400 in rental expenses
System: Digital folder for each property, scanned every receipt same day
ATO result: Audited after 2 years—produced all receipts in 10 minutes via cloud
Outcome: 100% of claims approved, no penalties, audit closed in 3 days
Lesson: Simple digital system = audit-proof + peace of mind.
🚨 Priya: The "I'll Do It Later" Freelancer
Claimed: $7,200 in home office & equipment
Problem: Kept paper receipts in a shoebox, many faded/illegible
ATO result: Could only verify $3,100 (44% of claims rejected)
Cost: $4,100 in lost deductions = $1,640 in extra tax (at 40% rate)
Lesson: Thermal receipts fade. Go digital immediately or they're worthless.
Your 30-Minute Weekend Action Plan
Don't wait until tax time. Do this today and you're sorted for the whole year:
Your 30-Minute Weekend Action Plan
Choose: Receipt app (easiest), Google Drive folders, or physical filing system
Create folders: "2025-26 Receipts" → subfolders by category (car, office, rental, etc.)
Round Up This Year's Receipts (10 min)
Grab every receipt from your wallet, car, desk. Snap photos of all paper receipts NOW (before they fade).
Upload to your chosen system. Sort them later—just get them digital ASAP.
Build the Habit (5 min)
Every time you get a receipt: snap photo → upload → done. Takes 10 seconds.
Set a phone reminder: "Did you scan today's receipts?" every evening at 9pm
Set Backup Reminders (5 min)
Calendar reminder: 1st of each month → "Back up receipts to second location"
Use 3-2-1 rule: 3 copies, 2 different media, 1 offsite (e.g., phone + laptop + cloud)
⏰ The Cost of Procrastinating
Average deductions lost per year due to missing receipts: $2,800
Time to set up a system: 30 minutes
ROI: $2,800 ÷ 30 min = $5,600 per hour of your time
What else pays $5,600/hour? Do this today.
ATO Receipt Rules: Quick Answers & FAQ
Q: Can I just use bank statements instead of receipts?
No. Bank statements are supporting evidence, not proof. The ATO wants actual receipts showing what you bought.
Q: Are photos on my phone enough?
Yes, IF they're clear and backed up. But if your phone dies, you lose everything. Use cloud storage.
Q: What if the receipt doesn't show what I bought?
Write notes on the receipt explaining the purchase. Example: "Office supplies: printer ink HP 920XL x3, staples, folders"
Q: Do I need receipts for expenses under $10?
Technically yes—any deduction needs proof. But the ATO is reasonable about coffee receipts. Keep receipts for anything over $20.
Q: Can I reconstruct receipts from memory for an audit?
No. "I'm pretty sure I spent $X on Y" won't work. The ATO wants contemporaneous records made at the time of purchase.
Q: What if a supplier refuses to provide an ABN?
If a supplier won’t provide an ABN for purchases over $82.50, you generally can’t claim the deduction. Report the payment to the ATO using a "No ABN Withholding" form if required.
Q: Are digital receipts from apps or emails valid?
Yes, as long as they show all required details (date, supplier, amount, description, ABN if needed) and are backed up securely.
The Bottom Line
- →Keep EVERY receipt for 5 years after lodging (or lose the deduction)
- →Go digital immediately — thermal receipts fade in weeks
- →Must have: Date, supplier, amount, description, ABN (if over $82.50)
- →Back up to cloud — your phone will die eventually
- →Set up system today — 30 minutes now saves $2,800+ at tax time
Never Lose A Receipt Again
ReceiptClaimer automatically backs up every receipt to the cloud, keeps them for 5+ years, and generates ATO-compliant reports in seconds. Start with 10 free receipts/month.