Receiving an Australian Taxation Office (ATO) audit or review request can be stressful, particularly when you are unsure what documents you need to provide. The good news is that understanding the request and organising your records properly can make the process much easier to manage.

When discussing a real, redacted ATO audit letter, John Saade of Latitude Accountants highlighted an important lesson for taxpayers: substantiation matters. The ATO may ask you to provide evidence supporting deductions, income and other information included in your tax return. Having organised records can help you clearly demonstrate how you arrived at the figures you reported.

What Documents Does the ATO Ask for During an Audit?

The documents requested will depend on what the ATO is reviewing.

There is no single checklist that applies to every taxpayer. If the review concerns work-related deductions, for example, the ATO may ask for receipts, calculations and evidence explaining how expenses relate to earning your income.

Depending on your circumstances, documents may include:

• Receipts and invoices
• Bank and credit card statements
• Employer letters or documentation
• Vehicle records
• Travel records
• Mobile phone and internet bills
• Home office records
• Work-related expense calculations
• Contracts and agreements
• Evidence of reimbursements
• Records supporting income received
• Documents relating to business transactions

The ATO advises taxpayers to provide enough information in a format that allows the review to be completed. It also advises taxpayers not to send original documents unless specifically requested.

Why Is Evidence So Important During an ATO Audit?

An ATO audit is not simply about telling the ATO that an expense occurred. You may need to demonstrate that the expense was incurred, was eligible for the deduction, and that the amount claimed was calculated correctly.

For work-related expenses, the basic requirements are generally that:

1. You spent the money yourself and were not reimbursed.
2. The expense is directly related to earning your income.
3. You have a record to prove the expense.

If an expense has both work and private components, you generally need to exclude the private portion from your claim.

This is why good record-keeping should begin when you incur an expense, rather than after an audit letter arrives.

Documents You May Need for Work-Related Expenses

Work-related deductions can cover many different types of expenses. The evidence required will depend on what you have claimed.

Receipts and Invoices

Receipts and invoices are among the most important documents for demonstrating that you incurred an expense.

They should generally show enough information to establish:

• What you purchased
• The amount paid
• The date of the purchase
• The supplier or business
• Other relevant details about the transaction

Keep these records in an organised digital or physical system so they can be located if required.

The ATO notes that where substantiation is required, particular forms of written evidence may be necessary. In other situations, you still need sufficient evidence to demonstrate that the expense was incurred.

Bank and Credit Card Records

Bank and credit card statements can help demonstrate that a payment was made.

However, a bank or credit card statement may not be sufficient by itself to establish all the details of a deduction. The ATO specifically notes that a bank or credit card statement is not an acceptable record on its own where further substantiation is required.

Where possible, keep the statement together with the relevant receipt, invoice or other documentation.

Evidence for Car and Motor Vehicle Expenses

Vehicle expenses can require more detailed records because cars are often used for both work and private purposes.

Depending on the method used to calculate the deduction, the ATO may request evidence such as:

• Vehicle registration details
• Lease documentation
• Odometer readings
• Logbook records
• Details of work-related journeys
• Fuel receipts
• Servicing and repair records
• Insurance records
• Evidence supporting the work-related percentage

You should also be able to explain why the journeys were work-related.

Simply driving to and from your normal workplace does not automatically make the travel deductible. The circumstances of the travel need to meet the relevant requirements.

Evidence for Work-Related Travel

Travel expenses can involve several different costs, so keeping supporting documents together is particularly useful.

Depending on the circumstances, evidence may include:

• Airfare receipts
• Accommodation invoices
• Parking receipts
• Toll records
• Taxi or rideshare receipts
• Public transport records
• Travel itineraries
• Records explaining the business purpose of the trip

If a trip includes both work and private activities, you may need to separate the eligible work-related expenses from the private component.

The more complicated the travel, the more important it is to retain records that explain what the trip was for and how the expenses were calculated.

Evidence for Working From Home Expenses

Working from home can involve deductions calculated using specific methods, so the records you need will depend on the method used.

You may need evidence such as:

• Records of hours worked from home
• Electricity or other relevant bills
• Internet and phone bills
• Calculations supporting your claim
• Records showing how work-related use was determined

If you use the actual cost method, detailed records supporting the calculation can be particularly important.

The key is to ensure your claim is based on eligible expenses and that you retain the records needed to demonstrate how you calculated the amount.

Evidence for Mobile Phone and Internet Expenses

If your phone or internet is used for both work and private purposes, you generally need to determine the work-related portion.

Evidence may include:

• Itemised phone bills
• Internet bills
• Usage records
• A representative diary or other record
• Calculations showing the work-related percentage
• Employer documentation where relevant

You should be able to explain how you arrived at the percentage claimed rather than simply estimating a figure.

Evidence for Work Clothing and Laundry

Clothing expenses can also require careful documentation.

The fact that you wear clothing to work does not automatically make it deductible. The nature of the clothing and how it is used are important.

If you are claiming eligible work clothing or laundry expenses, retain:

• Purchase receipts
• Clothing descriptions
• Laundry calculations
• Records supporting the work-related nature of the clothing
• Other relevant documentation

Ordinary clothing that could be worn outside work generally cannot simply be claimed because it is required or expected at your workplace.

What Evidence May Be Required for Business Expenses?

If the ATO is reviewing a business tax return, the documentation requested may be broader.

Business owners may need to provide records such as:

• Business invoices
• Supplier invoices
• Bank statements
• Sales records
• Expense records
• Payroll documentation
• Contracts
• Lease agreements
• Asset records
• Accounting records
• Tax calculations
• Financial statements

The ATO may also request documents explaining particular transactions or calculations included in the tax return. Its guidance indicates that tax working papers and documents supporting calculations can form part of the records relevant to tax affairs.

How Should You Organise Documents for an ATO Audit?

Having the right documents is important, but organising them properly can make your response much easier to prepare.

Start by grouping your records according to the items mentioned in the ATO’s letter.

For example:

Car expenses

• Logbook
• Odometer records
• Receipts
• Vehicle documentation
• Work-use calculation

Travel expenses

• Flights
• Accommodation
• Transport
• Parking
• Business-purpose documentation

Phone and internet

• Bills
• Usage records
• Work-use calculation

Home office

• Hours worked from home
• Relevant bills
• Calculation records

This approach allows you to quickly identify whether you have sufficient evidence for each claim.

How Long Should You Keep Tax Records?

Record retention requirements depend on the type of tax record and your circumstances. However, for many individual tax records, the general requirement is to keep records for five years from the date you lodge your tax return.

Electronic records can be useful because they can be searched and organised more easily, provided they remain accessible and contain the necessary information.

Do not assume that because a tax return has already been processed, you will never need the supporting documents again.

What If You Are Missing Some Documents?

If the ATO requests documents that you no longer have, do not simply ignore the request.

First, determine whether alternative evidence may be available. Depending on the circumstances, this could include other financial records, employer documentation or information from the supplier.

You should also avoid creating records after the fact that do not accurately reflect what happened.

If you are unsure what evidence is acceptable or how to address missing documentation, professional advice can help you determine the appropriate next step.

Should You Send Original Documents to the ATO?

Generally, you should not send original documents unless the ATO specifically asks you to do so.

The ATO advises taxpayers not to send original documents with their audit response and says original documents may be requested later if necessary.

Before submitting anything, make sure you understand how the ATO wants the information provided and keep copies of everything you submit for your own records.

How Can an Accountant Help With an ATO Audit?

An ATO audit can become difficult when there are numerous deductions, multiple financial records or uncertainty about what the ATO is asking for.

An experienced accountant can help you:

• Review the ATO’s request
• Identify the documents required
• Organise supporting evidence
• Check deduction calculations
• Identify gaps in your records
• Prepare explanations for particular expenses
• Communicate with the ATO where appropriate
• Understand potential issues before responding

At Latitude Accountants, John Saade and the team provide practical accounting and taxation advice to help individuals and businesses manage their tax obligations with greater confidence.

The objective is not simply to provide the ATO with a large collection of documents. It is to provide relevant, accurate evidence that clearly supports your tax position.

Frequently Asked Questions About ATO Tax Audit Documents

What documents does the ATO usually request during an audit?

The documents depend on what is being reviewed. Common examples include receipts, invoices, bank records, calculations, vehicle records, travel documentation, employer letters and business records.

Do I need to provide original receipts to the ATO?

Not usually. The ATO advises taxpayers not to send original documents unless they are specifically requested. Keep your original records and provide documents in the format requested.

Is a bank statement enough to prove a tax deduction?

Not necessarily. A bank or credit card statement can demonstrate that a payment was made, but it may not provide enough information to substantiate the nature and eligibility of the expense on its own.

How long should I keep documents for my tax return?

For many tax records, the general record-keeping period is five years from the date the tax return is lodged. Specific requirements can vary depending on the type of record and transaction.

What if I cannot find a document requested by the ATO?

Look for alternative evidence that may help establish the transaction and its purpose. If you cannot adequately support a claim, consider getting professional advice before responding.

Can an accountant deal with an ATO audit for me?

An accountant can help you understand the ATO’s request, review your records, prepare supporting information and, where appropriate, assist with communication with the ATO.

Need Help Preparing for an ATO Audit?

Received an ATO audit request or unsure whether you have the right documents to support your tax return? Latitude Accountants can help you review your records, understand what the ATO is asking for and prepare the appropriate supporting information.

Our experienced team provides practical accounting and taxation advice to help individuals and businesses stay compliant, manage their tax obligations and respond to ATO enquiries with confidence.

📍 Sydney Olympic Park | Marrickville | Melbourne | Loxton
📞 1300 706 597
📧 info@latitudeaccountants.com.au

Disclaimer

This article provides general information only and does not constitute financial, legal, tax or business advice. You should obtain professional advice relevant to your individual circumstances.