Are You Missing These Crucial Papers? Maximise Your Tax Refund Now!

If you’re claiming deductions on your tax return, the Australian Taxation Office (ATO) requires that you keep records to back up every claim. That means receipts, invoices, logbooks, and more,depending on what you’re claiming.

In short: If you can’t prove it, you can’t claim it. This guide walks you through the types of documents you’ll need, how long to keep them, and what the ATO is looking for. Whether you’re a salary earner, a small business owner, or a rental property investor, we’ll cover the supporting documentation you need,simply and clearly.

Why Supporting Documentation Matters

The ATO doesn’t need you to send documents with your tax return. But they can ask to see them at any time. If you can’t provide the right records, your deductions can be disallowed,and you may face penalties or interest charges.

Supporting documents are your evidence. They show:

• That you spent the money, and 
• That the expense was related to earning your income 

Without both, a deduction won’t stand up to scrutiny.

What Counts as Acceptable Supporting Documents?

Supporting documents must clearly show the following:

• What the expense was for 
• Who made the purchase (your name or ABN) 
• Who it was paid to 
• When it was paid 
• How much was paid 

Accepted documents include:

• Receipts or invoices 
• Bank or credit card statements 
• Logbooks or diaries (for travel or car expenses) 
• Payslips and payment summaries 
• Contracts or lease agreements 

Let’s break it down by common claim types.

Work-Related Expenses

Clothing and Laundry

You’ll need:

• Receipts for uniforms, protective clothing or occupation-specific gear 
• Diary entries if claiming laundry (up to $150 without receipts, but still need reasonable evidence) 

Note: You can’t claim plain clothing, even if you wear it to work.

Vehicle and Travel

You’ll need:

• A logbook if claiming car expenses using the logbook method (must be kept for 12 weeks) 
• A travel diary if away overnight for work 
• Receipts for petrol, servicing, tolls if using actual cost method 

If using the cents-per-kilometre method (max 5,000 km per vehicle), you don’t need receipts, but the ATO expects you to be able to show how you calculated the distance.

Home Office

You’ll need:

• Diary records showing work-from-home hours 
• Receipts for equipment, electricity, internet and phone costs 
• Apportioning calculations (to separate personal and work use) 

The ATO’s fixed rate method requires detailed records from 1 March 2023 onwards,including hour-by-hour records of time spent working from home.

Self-Education and Training

To claim study-related costs:

• Keep course enrolment papers 
• Receipts for textbooks, student fees, stationery 
• Proof that the course relates directly to your income-producing work 

Not all education costs are deductible. Courses must maintain or improve your current job skills,not prepare you for a new job.

Donations and Gifts

To claim a deduction:

• Donations must be made to a Deductible Gift Recipient (DGR) 
• Keep receipts showing the amount donated and the DGR’s name 

You can’t claim for raffle tickets, fundraising dinners, or donations where you receive something in return.

Investment Income Deductions

If you earn income from shares or rental properties, keep:

Shares

• Purchase and sale contracts 
• Dividend statements 
• Brokerage invoices 
• Records of any capital improvements or related costs 

Rental Properties

• Lease agreements 
• Agent statements 
• Invoices for repairs, maintenance, insurance, interest 
• Depreciation schedules for assets 

The ATO pays close attention to rental claims,especially when distinguishing between repairs (deductible) and improvements (capital in nature).

Small Business Expenses

If you’re a sole trader or operate through a company or trust:

• Keep invoices and receipts for all business expenses 
• Maintain separate bank accounts for business and personal use 
• Record GST and PAYG withholding if registered 
• Retain copies of contracts, BAS statements, and payroll records 

The ATO requires businesses to retain these records for five years from the date you lodge.

Digital vs Physical Copies: What the ATO Accepts

You don’t have to keep paper copies. The ATO accepts:

• Scanned copies or photos of receipts (as long as they’re clear and readable) 
• Spreadsheets or apps that track mileage or expenses 
• Email receipts, if they include the necessary details 

Make sure your digital records are stored securely and are backed up. If you lose them, the ATO may still require proof.

How Long Do You Need to Keep Tax Records?

In most cases, keep your supporting documentation for at least five years from the date you lodge your tax return.

However, if you:

• Have capital gains assets (like shares or property), keep records until five years after you sell 
• Carry forward losses, you may need to keep records even longer 

There’s no penalty for keeping records longer,but plenty of downside if you toss them too early.

Tools and Tips for Staying Organised

Keeping good records doesn’t have to be a headache. Try these:

• Use apps like ATO myDeductions, Xero, or Receipt Bank 
• Set up a dedicated folder for each financial year 
• Label receipts clearly with what they’re for 
• Snap photos of receipts the moment you get them 

Well-kept records make tax time easier, faster, and less stressful,for you and your accountant.

Final Thoughts: Good Records = Good Returns

Supporting documentation is the backbone of a strong tax return. Whether you’re claiming $50 or $5,000, you need clear, legible records to show the ATO your claims are legitimate.

If in doubt, keep the receipt. If you’re unsure whether an expense is deductible, speak with a tax professional—like those at Tax Window,who can guide you through what’s allowed and what’s not.

Good records don’t just protect you,they often uncover deductions you might’ve missed.