What is the $75 receipt rule?

The $75 receipt rule is an Australian Tax Office (ATO) concession that reduces the paperwork burden for small work-related expenses. Understanding exactly when it applies — and when it does not — can save you from a rejected claim during an audit.

What the rule says

Under the ATO's written evidence rules, you are generally not required to hold written evidence (a receipt or invoice) for individual work-related expenses under $75, provided your total claim for such expenses does not exceed $300. If the total of your unreceipted expenses exceeds $300, you need written evidence for all of them — including the ones under $75.

What is not covered

The $75 exception does not apply to:

• Travel allowances (you still need a travel diary or other records)
• Car expenses (logbook or cents-per-kilometre records required)
• Depreciating assets
• Expenses where the ATO has specified particular record-keeping requirements

The practical implication

Even when you are not legally required to hold a receipt, keeping one is always better practice. If you are audited, a receipt resolves the question immediately. Without one, you need to reconstruct the claim from bank statements or other evidence, which is slower and less certain.

Does it apply in other countries?

This specific rule is Australian. The US, UK, and New Zealand have different thresholds and rules. If you are not in Australia, check the rules of your own tax authority.

The easiest approach

Keep every receipt regardless of the amount. With a receipt app, capturing a $4 coffee receipt takes less than ten seconds. The cost of keeping the record is lower than the cost of reconstructing it later.