Insights
Best practices and tips on spend management, automated expense tracking and corporate debit cards for Australian SMB and enterprise businesses.
Tax time doesn’t have to be chaotic—but for many small businesses, it often is. Missing receipts, vague expense categories, and last-minute reconciliation can create unnecessary stress and put you at risk of errors or penalties.
That’s why understanding how to manage tax receipts effectively is so important. These records are the building blocks of your financial reporting and can directly affect your GST claims, business deductions, and audit readiness.
In this blog, we’ll unpack what tax receipts are, what they should include, and how to build better systems to manage them throughout the year.
What is a tax receipt?
A tax receipt is a document that proves a payment has been made for a good or service—and that the payment includes GST (Goods and Services Tax), if applicable. For businesses registered for GST in Australia, valid tax receipts are essential for claiming input tax credits on eligible purchases.
Unlike invoices, which request payment, a tax receipt confirms a transaction has been completed. They’re required not only for tax claims but also for internal record-keeping and audit trails.
When do businesses need to collect tax receipts?
In Australia, the ATO requires a valid tax receipt (also called a tax invoice) for purchases over $82.50 (including GST) if you intend to claim a GST credit. Businesses should also retain receipts for purchases under that threshold if GST is included, as it supports accurate reporting and serves as backup documentation.
Receipts are needed for a range of transactions, including:
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Office supplies
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Travel and accommodation
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Meals and entertainment
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Software and subscriptions
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Fuel and vehicle expenses
It’s best practice to capture a receipt for every expense, regardless of amount. This helps reduce guesswork later and ensures you’re audit-ready year-round.
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Cut down on admin and get back to what matters with Budgetly's resources. 
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Why tax receipts matter for compliance
Receipts are more than just paper or pixels—they’re proof. When it comes to compliance with ATO regulations, they validate that your business is claiming deductions and credits appropriately.
Missing or incomplete receipts can lead to:
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Disallowed GST claims
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Inaccurate expense categorisation
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Delays in BAS preparation
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Increased risk in the event of an audit
Keeping your receipts organised protects your business from these risks and supports better decision-making based on reliable data.
What to look for in a valid tax receipt
Not every receipt meets the ATO’s criteria for a valid tax invoice. To be compliant, a tax receipt should include the following:
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The supplier’s name and ABN
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The date of the transaction
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A description of the goods or services purchased
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The amount paid, clearly showing the GST component
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The words “Tax Invoice” if the total exceeds $82.50 (inc. GST)
Digital copies are acceptable—as long as they’re legible and stored securely. Many businesses are shifting to digital-first expense tracking for this reason.
How to organise tax receipts for your business
For finance teams, tax receipt organisation should be proactive—not reactive. The goal is to capture receipts at the point of purchase, link them to the correct account or project, and store them in a way that makes retrieval easy.
Relying on folders of paper receipts or scattered inbox downloads increases the risk of loss or duplication. Instead, businesses should adopt a digital system that:
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Lets employees upload receipts instantly from mobile or desktop
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Links receipts to specific transactions for audit trails
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Supports categorisation and tagging by project, department, or supplier
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Integrates with accounting platforms for faster reporting
An organised approach means your books are always ready—whether for monthly reviews or EOFY submissions.
Common issues with tax receipt tracking
Even businesses with good intentions often run into problems managing tax receipts. Common challenges include:
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Lost receipts: Staff forget to keep or upload receipts, especially for small purchases.
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Unreadable images: Photos of crumpled or blurry receipts can’t be accepted by the ATO.
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Incorrect matching: Receipts aren’t tied to the correct transaction or category.
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Delayed uploads: Waiting until month-end or quarter-end increases admin burden and risk of errors.
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Manual data entry: Processing receipts by hand slows everything down and introduces potential mistakes.
All of these issues can be resolved with better systems—and smarter tools.
How Budgetly helps simplify tax receipt management
Budgetly was designed to reduce the friction around business spending—including how receipts are captured, stored, and reconciled.
With Budgetly, employees are issued corporate prepaid cards or virtual cards for their business purchases. Each transaction is recorded in real time, and employees are prompted to upload a tax receipt immediately via mobile or desktop.
Because the transaction is already tied to a specific merchant and spend category, there’s less room for error. Finance teams get:
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Automatic matching of receipts to transactions
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Visibility into missing or overdue receipts
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Audit-ready records without chasing people
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Data that flows directly into accounting platforms like Xero integration
Budgetly makes it easier to enforce spend policies, ensure documentation is compliant, and reduce the manual load on your finance team.
Wrapping up: Build a better foundation for financial compliance
Keeping tax receipts organised isn’t just about staying out of trouble with the ATO. It’s about ensuring your business gets back what it’s entitled to—whether that’s GST credits or deductible expenses—and having a system in place that reduces admin while improving confidence.
By adopting tools that make tax receipt tracking second nature, you free up your team to focus on what really matters: managing business growth, planning ahead, and supporting smarter financial decisions.
If you’re ready to make tax time less painful—and your finances more accurate—Budgetly is here to help.
