Taxpayers must keep written evidence of their deductible expenses. What is written evidence?
1. a document from the supplier (eg: an invoice) which shows
- name of the supplier
- amount
- nature of the expense
- date of the expense
- bank statements
- credit card statements
- BPay references
- emailed receipts
- Your PAYG summary which may show expenses which have been deducted from salary.
A couple of important things to remember:
- bank / credit card statements on their own are not sufficient to meet the ATO requirements.
- there must always be a connection between the expense and income earned.
- certain expenses may require apportionment for private use (eg: home internet, mobile phone)
Now, if you are after a sure fire way of tracking all your expenses, and your personal finances, take a look at Xero Touch. For just $60 a year (tax deductible), you can track income and expenses, set budgets and you can take photos of receipts. Think about it : you mislay or forget a few expenses, that will cost you real dollars.