BBQ Myth Buster: Can You Claim Without Receipts? Let us Clear the Smoke

There is something about an Aussie BBQ that brings out the amateur tax experts. The sausages are sizzling, someone is topping up the esky, and without fail a relative appears with life changing advice about your taxes. Suddenly everyone is an accountant, even though the closest they have been to the ATO is logging into MyGov once in 2016.

This time the myth comes courtesy of your sister in law. According to her, you do not need to keep receipts. All you need is a good memory and a confident nod when the accountant asks what something cost.

Look, we are sure she means well… but no. Very much no.

Let us break down exactly why this little BBQ myth is one of the quickest ways to end up in hot water.

Where the myth comes from

This myth usually starts with someone who once claimed a deduction under a certain dollar amount without being asked for a receipt. Then it gets retold at BBQs until it becomes a bold new rule that somehow ends with people thinking, “Just remember the number and you are sweet.”

The truth is a lot less exciting.
Even if you are not required to provide a receipt on the spot, you still need to be able to prove the expense existed. Memory alone does not count as proof. The ATO wants evidence that something was real, work related, and actually paid for.

A confident shrug will not cut it.

What the ATO actually requires

To claim an expense, you need substantiation. That means records. Evidence. Something more than, “I reckon it was about ninety bucks.”

Acceptable records include:
• Digital receipts
• Bank statements
• Invoices
• Photos of receipts
• Emails confirming purchases
• Subscription invoices

Basically, anything that proves you spent the money and that it relates to your business.

Your memory might be excellent. You might even be the reigning family trivia champion. But the ATO does not care. They need documentation.

But what about the small stuff?

There is a small exception where certain minor expenses do not strictly need a receipt, but you still need the details written down. The amount, the date, what it was for, and why it was work related.

So even in the tiny number of cases where a physical receipt is not required, you still cannot rely on memory alone. You need a record. Because when the ATO asks how you came up with the amount, you cannot say, “My sister in law told me it was fine.”

What happens if you rely on memory

Here is where things get stressful.
If the ATO decides to review your return, they will ask for evidence. No receipts means no proof. And no proof means your deduction is knocked back, plus potential penalties.

Then you are stuck paying more tax, possibly fines, and definitely questioning your life choices at the next BBQ.

And trust us, the ATO checks more than people think. Their tech is sharp, their data matching is fast, and they love a clean paper trail.

Why keeping receipts is easier than you think

You do not need to keep a shoebox full of crumpled dockets. A simple system can save you a lot of pain.

Try these:
• Take a quick photo of the receipt and upload it to a folder
• Use a bookkeeping app that stores receipts
• Download subscription invoices automatically
• Forward receipts to your accounting inbox

Two seconds now saves hours later.

Your accountant will love you. Your future self will love you. Even your sister in law might love you, although she may still insist she is right.

The truth

You do need receipts. Or documents. Or something written down.
Your memory is not a valid tax record, even if you can recite your ATO login by heart.

The good news is that keeping records is simple, and when you work with an accountant who translates the numbers and keeps things stress free, the whole process becomes much easier.

Your sister in law can keep the gossip. Let us take care of the facts.

If you need help getting organised or sorting out your expenses properly this year, we are here to make it simple, human, and judgment free.

Book a free assessment and let us help you get your books ready for a calm and clear year ahead.