Does the ATO need receipts for tools?

Receipts or invoices are the strongest evidence for tools, especially when total claims exceed $300 or the item is expensive.

Last updated: 7 July 2026. General information for Australian tradies. Not personal tax advice.

Small tools

For smaller tools, keep receipts where possible. If you do not have one, keep bank evidence, item notes and a work-use explanation.

Tools over $300 often need depreciation and written evidence. Losing the receipt can make the claim harder to support.

Suppliers may be able to reissue invoices if you paid by card, account, or loyalty profile.

Enter small tools under Tools & PPE and expensive tools under Asset Depreciation.