Do I need to keep receipts for work-related expenses under $300?

If your total work-related expense claim comes to more than $300, the ATO requires written evidence such as receipts or invoices for the whole claim, not just the amount above $300. If your total claim is $300 or less, you still need records showing how you worked out the figure, but you don't have to hold a receipt for every item. Note that this $300 threshold applies to individuals claiming work-related deductions — if you're a sole trader carrying on a business, you're expected to keep records of every business transaction no matter how small.

What makes a digital receipt acceptable to the ATO?

The ATO accepts electronic copies, including photos, as long as each one is a true and clear reproduction of the original. In practice that means the whole receipt has to be readable — the supplier's name, the date, the amount, and any GST. A blurry photo that cuts off the total isn't a valid record, but a clear shot of the full receipt is.

Where should I store digital receipts so they meet ATO requirements?

The ATO expects your records to be available if you're asked for them, so store your receipts somewhere you can actually retrieve them rather than trapped on a single phone. Backing them up to the cloud is the safest approach, because a copy that's been lost or corrupted is no better than a faded paper slip. Whatever system you use, keep the copies legible for the full five-year retention period.

Do You Need to Keep Paper Receipts? What the ATO Requires

Q: How long do I have to keep receipts for business equipment and other assets?

The general rule is five years, but depreciating assets and capital gains tax assets need to be kept longer. For those, you generally keep the records for as long as you own the asset and then a further five years after you sell or dispose of it. Make sure your digital copies stay legible and backed up for that whole period.

Last updated 28 June 2026

The short answer: no, you don't need to keep the paper. In Australia, the ATO accepts digital copies of receipts — including photos — so once you have a clear, legible copy, you can throw the original away. If you've been hoarding faded slips out of fear, you can stop. Below is exactly what the ATO requires, so you can go digital with confidence.

Digital copies are fine

The ATO is explicit that you can keep your records in either paper or electronic format, and that electronic copies — including photos of your written evidence — are acceptable. The only condition is that each copy must be a true and clear reproduction of the original. In plain terms, the whole receipt has to be readable: the supplier's name, the date, the amount, and the GST if any. A blurry photo that cuts off the total isn't a valid record; a clear one of the full receipt is.

This is genuinely good news, because most receipts are printed on thermal paper that fades to a blank slip within months. Photographing a receipt the day you get it actually makes your records more reliable than keeping the paper, not less.

How long you have to keep records

Going digital doesn't change how long you must keep things. The general rule is five years. For each record, that five-year period starts from when you prepared or obtained the record, or completed the transaction it relates to — whichever is later. For most people this works out to roughly five years from when you lodge the relevant tax return.

A few records need to be kept longer. For depreciating assets and for capital gains tax assets, you generally keep the records for as long as you own the asset and then a further five years after you sell or dispose of it. So whatever system you use, make sure your digital copies stay legible and backed up for the full retention period — a copy that's been lost or corrupted is no better than a faded slip.

When you need a receipt at all

It's worth knowing that you don't always need a receipt for every single item. For work-related expenses, the ATO's substantiation rule is based on a $300 threshold:

If your total work-related expense claim is more than $300, you must keep written evidence — receipts or invoices — for the whole claim, not just the amount over $300.
If your total claim is $300 or less, you still need records showing how you worked out the claim, but you don't have to hold a receipt for each item.

Some categories sit outside this rule and have their own requirements — car expenses, travel allowances and a few others — so check the specific rules if you're claiming those. Worth flagging, too: this $300 line applies to individuals claiming work-related deductions, not to a business — if you're a sole trader carrying on a business, you're expected to keep records of every business transaction no matter how small. For practical purposes, though, most sole traders are well over $300 in total deductions, which means keeping evidence for everything is the safe default. There's no real downside to over-keeping: the effort of photographing a small receipt is tiny next to the cost of losing a deduction because you couldn't substantiate it.

The conditions, in plain English

Pulling it together, a digital receipt satisfies the ATO when it is:

Legible and complete — a true and clear reproduction showing supplier, date, amount and GST.
Kept for the retention period — five years in most cases, longer for assets.
Available if asked — stored somewhere you can actually retrieve it, ideally backed up to the cloud rather than trapped on one phone.

The practical takeaway

You can confidently throw out paper receipts in Australia, as long as you've captured a clear digital copy first and you keep it for five years. That's it. The simplest way to stay compliant is to photograph each receipt as you get it and let it live in a backed-up system — which is exactly what an app like Snapceipt does, reading the merchant, total and GST straight from the photo.

For the full picture on recording expenses, see the guide to tracking business expenses in Australia. And to build a system you can actually search, read how to organise receipts for tax.