Do I Need to Keep Paper Receipts for Tax Time?

Keeping proper records isn’t just about staying organised. It’s essential for tax compliance. Without accurate records, you could: 

• Miss out on tax deductions  

• Have a hard time during an audit  

• Experience delays when preparing your BAS or tax return 

A common misconception is that paper copies are required. The good news is, the ATO accepts digital records if they are complete and legible. 

What the ATO Actually Requires 

You do not need to keep paper receipts if you have a clear digital copy. This means you can: 

• Scan or photograph your receipts  

• Save them securely in cloud storage  

• Use apps like Xero (Hubdoc), QuickBooks, MYOB or Dext

Your digital copies must include the supplier’s name, the date of purchase, the amount paid, and details of what was purchased. 

The ATO requires that you keep these records for five years from when you lodge your tax return or BAS. 

If you are using software like Xero, you can upload the receipt directly into the receipt capture app (Hubdoc) and everything stays in one place and is ready when you need it. 

When You Might Still Need Paper Copies 

Most of the time, digital records are enough. However, you might want to keep the original copy if: 

• The receipt is handwritten and not very clear

• It is a legal or financial document that needs to be physically signed

• The digital scan is blurry or missing important details 

When in doubt, hold on to the paper version for a while until you’re confident your digital backup meets all the requirements.

What We Recommend 

At Rise Accountants, we encourage clients to go digital whenever

possible. It saves time, reduces clutter and keeps everything easy to find. We have helped many businesses transition from paper heavy systems to smooth, cloud-based record keeping. 

If setting up your own system feels overwhelming, we are here to help. 

Book your FREE 15 Minute Discovery Call