I know, I’ve said it before and I’ll say it again – keeping records is important.
We know the Australian Taxation Office (ATO) have established rules that you can read here, but I am still surprised when I am asked by a client to “just claim what I can without receipts”…
You see, there’s no such thing!
There is a misunderstanding that individual taxpayers can claim work related motor vehicle use of 5,000 kilometres with out records – this is not exactly true. While receipts for fuel and the like are not required, there is a requirement that you must be able to prove you travelled the kilometres (perhaps by way of a diary note).
Another misunderstanding is that individual taxpayers can claim up to $300 in work related deductions without receipts – this is not exactly true. While the specific receipts are not required, there is a requirement that you can prove you incurred the expense.
The only way to prove you incurred these expenses is to keep records.
I’ve said it before, and I’ll say it again – keeping records is important!