Should I keep grocery receipts?

For most people, grocery receipts have almost no tax value and can be discarded immediately. But there are situations where keeping them makes sense — and getting this right stops you from hoarding receipts that serve no purpose.

When grocery receipts are NOT worth keeping

Personal food and grocery expenses are not tax-deductible in Australia. Buying food for yourself and your household is a private expense, regardless of whether you work from home. Throw these receipts out — or do not bother photographing them at all.

When they ARE worth keeping

Food for a work-related function

If you buy food specifically for a work event — morning tea for a client meeting, supplies for a staff function you are organising — that may be deductible as a work expense. Keep the receipt and note the purpose.

Running a business from home

If you run a home-based food business — a catering operation, a market stall selling food you prepare — ingredients are a business expense and the receipts matter. Same applies for any business where grocery items are inputs.

Warranty and consumer rights

Large grocery purchases — appliances bought at a supermarket, or items you might need to return — are worth photographing for warranty and consumer law purposes, even if they have no tax relevance.

Budget tracking

If you are tracking household spending rather than tax deductions, grocery receipts are useful. Most receipt apps can handle this — categorise them as "personal" so they stay out of your tax records but remain available for budgeting.

The quick test

Before keeping a grocery receipt, ask: "Is there any chance I'm claiming this on tax?" If the answer is no, bin it. If yes — even a small chance — photograph it and add a note. You can always discard it later once you have decided not to claim.