The little known rule allowing Aussies to make a tax claim without a receipt

Australians can even make claims on their tax returns without a receipt if all items cost less than $300 for that financial year.

The October 31 deadline for filing returns is just three weeks away, leaving many scrambling for the documents to support a work-related claim.

But the Australian Taxation Office (ATO) has a rule that allows claims without a receipt if anything work-related costs less than $300, from notepads to highlighters, calculators and work-related clothing.

“If your total claim for work-related expenses is $300 or less, you can claim a deduction without written proof,” the report said.

‘You must be able to demonstrate that you have spent the money and how you calculate the amount of your claim.’

But the $300 rule cannot be used for car expenses, meal reimbursements and travel reimbursements.

H&R Block’s director of tax communications Mark Chapman said the $300 ‘shortcut’ rule meant receipts and invoices would not be needed as evidence if the tax authorities were to investigate.

“It is intended as a concession to help people who have small claims for work-related expenses,” he told Daily Mail Australia.

“But don’t forget that the $300 limit applies to all your work-related expenses. It’s not per piece.’

If all work-related expenses exceeded $300, receipts and invoices would be required for 2023-2024.

Individual items costing up to £300 can be claimed in a single financial year, including things like an office chair and a desk for those working from home.

“Yes, if it is a capital asset and its cost is less than $300, an immediate deduction is available if the cost is related to your employment,” Mr Chapman said.

‘You can only claim if the costs relate to work.

‘If the expenditure is private or domestic, you can expect the ATO to disallow the deduction and possibly charge a penalty.’

If the item costs more than $300, it must be written off over several tax returns.

But small businesses purchasing an item worth up to $20,000 can claim the full amount in one financial year, with immediate asset depreciation extended until June 2025.

That means this special deal covers the 2023-24 financial year, which will be the subject of tax returns due this month.

The October 31 deadline for filing returns is just three weeks away, leaving many professionals scrambling for the documents for work-related items (pictured is a Sydney Officeworks)

However, the tax authorities are cracking down on fraudulent claims, suggesting there is an $8.7 billion gap between what Australians pay and what they collect.

“The ATO will ask for substantiation if it suspects the costs are not realistic,” Mr Chapman said.

“This can be standalone or as part of a full review or audit of your tax returns.”

Those who work from home must keep a diary or copies of their roster to claim the flat rate of 67 cents per hour, which takes into account mobile and internet costs.

The form of the file can be a diary, or time sheets or copies of the employee schedule.

But those who want to claim heating and cooling costs must provide bills and calculate how much of a home is used for work, related to energy costs.

Individuals have until October 31 to file their tax returns or register with a tax agent to receive an extension until May 15.