Quick answer: Can you claim without a receipt?
Sometimes, yes — but there is no automatic deduction. The ATO has limited exceptions to the usual written-evidence rules, including an exception for certain work-related expenses totalling $300 or less. You must still have genuinely incurred an allowable expense and be able to explain the basis of your claim.
Generally applies to written evidence for certain work-related expenses, not an automatic claim.
Specific written-evidence exception for eligible laundry expenses, with other proof still needed.
Bank records, diaries and other documentation can help, but not every record meets ATO requirements.
Many Nepali workers in hospitality, cleaning, retail, healthcare, construction and office roles purchase items for work throughout the year. It is easy to misplace a receipt or forget to save an emailed invoice. But a missing receipt does not automatically mean the expense is deductible — or that it must always be excluded.
1. The three basic rules for work-related deductions
Before worrying about receipts, check whether the expense qualifies for a deduction at all. Generally, you must:
- Have spent the money yourself and not been reimbursed by your employer or someone else.
- Have incurred the expense directly in earning your assessable income.
- Have records to prove the expense, unless a specific recordkeeping exception applies.
If an expense has both private and work use, you can generally claim only the work-related portion. An item is not deductible just because you bought it while employed.
2. What is the ATO's $300 written-evidence exception?
Under the general rules, you may not need written evidence for certain work-related expense claims when the total amount of those expenses is $300 or less for the income year. This is an exception to written-evidence requirements, not permission to invent an amount.
There are special rules and exclusions. For example, eligible laundry expenses are dealt with separately, while car expenses and travel allowance expenses have their own substantiation arrangements.
Even where the exception applies, you must be able to demonstrate that you actually incurred the expense, that it was work-related, and how you calculated the amount.
3. Is the $300 rule a free $300 deduction?
No. The $300 figure is commonly misunderstood. It is a written-evidence threshold for certain work-related expenses, not a flat deduction available to everyone.
A retail worker purchases eligible work-related items costing $240 in total. If those expenses fall within the written-evidence exception, the worker may not need the usual receipts, but must still be able to show the purchases happened and explain the work-related purpose and amounts.
A student worked casually but bought no deductible work-related items and incurred no other allowable work-related expenses. They cannot claim $300 merely because the written-evidence exception exists.
4. What if your expenses exceed $300?
If the total of the relevant work-related expenses exceeds $300, the general written-evidence rules apply to those expenses, subject to any specific exceptions. This does not mean only the amount above $300 needs substantiation.
For eligible expenses, written evidence will usually need to show information such as the supplier, amount, nature of goods or services, date the expense was incurred and date of the document.
5. What if you lost your receipts?
Start by trying to recover the original documentation. Many retailers and service providers can resend invoices or electronic receipts. Search your email, banking app, online store account and cloud storage.
If you cannot recover a receipt, consider whether a particular substantiation exception applies. A bank statement can help establish that you paid an amount, but it may not show what you purchased or why it was work-related. Additional evidence may be needed.
- Request a replacement invoice or receipt from the supplier.
- Download the purchase invoice from an online account.
- Keep bank or card transaction records alongside item descriptions.
- Preserve work rosters, employer instructions and other documents showing the work connection.
- Record your calculation of the work-related percentage where there is mixed use.
6. What evidence can support your claim?
| Record | How it helps | Important limitation |
|---|---|---|
| Tax invoice or receipt | Usually the strongest evidence of the purchase and its details. | Still need a genuine work connection. |
| Bank or card statement | Can confirm payment amount, date and merchant. | May not identify the actual item or service. |
| Email confirmation | May identify the supplier, item and price. | Keep a complete copy with transaction details. |
| Work diary or usage log | Helps explain business/work use and apportionment. | Does not necessarily replace required written evidence of purchase. |
| Employer documentation | May show why an item was required for work. | Does not prove you paid for it. |
| Replacement invoice | Can restore missing written evidence. | Ensure it accurately reflects the original transaction. |
7. What about the $150 laundry rule?
There is a separate written-evidence exception for eligible laundry expenses of $150 or less. This does not mean everyone can automatically claim $150. The clothing must itself qualify under the tax deduction rules, and you must be able to explain how you calculated the actual laundry cost.
For example, washing ordinary everyday clothes worn to work is generally not deductible simply because they are part of your work outfit. Eligible protective clothing, occupation-specific clothing or compulsory uniforms may be treated differently.
8. Can you claim phone and internet expenses without receipts?
Only the work-related portion of eligible phone and internet expenses may be deductible. You should keep bills, payment records and evidence supporting your work-use percentage. The ATO may require a representative usage record or other appropriate calculation method.
A monthly direct debit alone does not establish how much of your phone or internet usage was for work. Personal streaming, social media and private calls are not deductible merely because you also use the service for work.
Related guide: Phone and Internet Tax Deductions for Nepali Workers.
9. Working from home: Do you still need records?
Yes. If you use the ATO's fixed-rate method for eligible working-from-home running expenses, you generally need records of the actual hours worked from home throughout the income year and evidence that you incurred the relevant covered expenses. The fixed rate is not a way to avoid keeping records altogether.
If you use the actual-cost method, you need evidence of the relevant expenses and a reasonable basis for apportioning the work-related use. Different records may be required depending on the expense and method.
10. Practical examples for Nepali workers
A kitchen worker purchases qualifying protective items for work but loses a receipt. They should try to obtain a replacement and check whether the expense falls within a relevant written-evidence exception. Ordinary clothing and non-deductible purchases cannot be included merely to reach $300.
A worker pays for a mobile plan and occasionally uses it for work. They need a reasonable calculation of the work-related proportion and appropriate records. Claiming the entire plan without accounting for private use is not appropriate.
A cleaner washes eligible protective or compulsory uniform items at home. The worker may be able to calculate eligible laundry costs under the applicable rules, but ordinary clothes do not qualify simply because they are worn while cleaning.
11. What happens if the ATO asks for proof?
The ATO may review work-related deduction claims and request supporting information. You may be asked to explain what was purchased, how it relates to your employment, whether you were reimbursed and how any work-related portion was calculated.
If you cannot substantiate a claim under the applicable rules, the ATO may reduce or disallow it. Incorrect claims can also lead to interest or penalties depending on the circumstances.
Read more: ATO Tax Audit and Review Guide.
12. Common mistakes to avoid
- Claiming exactly $300 every year without having actual deductible expenses.
- Assuming bank statements always replace tax invoices.
- Claiming ordinary everyday clothing or its laundry costs.
- Including personal use in phone, internet or equipment deductions.
- Claiming amounts reimbursed by an employer.
- Assuming the $150 laundry exception makes $150 automatically deductible.
- Discarding records immediately after lodging.
- Using estimated figures without a defensible calculation.
13. Work expense recordkeeping checklist
- Confirm the expense is deductible and connected to your income.
- Check whether you paid for it yourself and were not reimbursed.
- Save digital receipts and invoices as soon as you receive them.
- Keep a separate folder for each financial year.
- Record how you calculated the work-related percentage.
- Retain rosters, usage logs or other evidence where relevant.
- Review whether an ATO written-evidence exception genuinely applies.
- Keep records for the required retention period, generally five years from lodgment, subject to applicable exceptions.
- Ask a registered tax professional if your situation is unclear.
Frequently asked questions
Can I claim $300 without any receipts?
There is a limited written-evidence exception for certain work-related expenses totalling $300 or less. You must still have incurred deductible expenses and be able to explain the amount. It is not an automatic $300 deduction.
Do I need receipts if my total expenses are $250?
Not necessarily for certain expenses covered by the exception, but other recordkeeping rules and exclusions can apply. You still need to demonstrate the expense was incurred and deductible.
What if my expenses total more than $300?
Generally, the written-evidence requirements apply to the relevant expenses as a whole, subject to specific exceptions. The rule does not simply exempt the first $300.
Can I use a bank statement instead of a receipt?
A bank statement can support proof of payment, but may not identify what was purchased. Whether it is sufficient depends on the applicable evidence rules and other supporting records.
Can I claim $150 for laundry automatically?
No. The $150 rule is a written-evidence exception for eligible laundry expenses, not a flat deduction. You must have qualifying laundry costs and a reasonable calculation.
Can I claim work shoes without a receipt?
First determine whether the shoes are deductible. Ordinary shoes are generally not deductible, while certain protective footwear may qualify. Then check the applicable evidence requirements.
Do international students follow different receipt rules?
The general substantiation rules apply to eligible work-related deductions. Tax residency and other individual circumstances can affect the overall tax return, but student status alone does not create a special automatic receipt exemption.
How long should I keep tax records?
Generally, tax records should be kept for five years from when you lodge the tax return, though special rules or longer periods can apply in some circumstances.
Unsure what you can claim?
Hamro Accountant can help you understand which work-related expenses may qualify and what records you need for your Australian tax return.
Contact Hamro Accountant →Official ATO resources
Disclaimer: This guide provides general information for the 2025–26 Australian income year and is not personal taxation advice. Deductibility and recordkeeping requirements depend on the expense and your circumstances. Refer to current ATO guidance or a registered tax agent before lodging.