Deductions are lost in the gap between spending the money and writing it down. Balaana closes that gap: photograph the receipt when you get it, pick a category, and it is recorded — with the GST split out and the image kept as your evidence. Expense and receipt capture is on the free plan.
Why the photo matters
The ATO requires written evidence for the deductions you claim, and it needs to be kept for five years from the date you lodge. A faded thermal receipt in a glovebox is not evidence by the time anyone asks for it. A photograph taken at the point of sale is, and it is legible for as long as you keep it.
Balaana stores the image against the transaction, so the receipt and the record it justifies never get separated. If you are ever reviewed, the evidence is attached to the claim rather than in a shoebox.
GST split out as you go
Every expense is tagged with its GST treatment when you enter it: standard rated, GST-free, or no GST because the supplier is not registered. That matters more than it sounds — the GST you can claim back at 1B on your BAS is only the GST actually charged to you, and getting it wrong in either direction is the most common small-business BAS error.
What you can record
- Everyday expenses — materials, tools, subscriptions, fuel
- Recurring costs — rent, insurance, phone, software
- Mixed-use items, with the business-use percentage recorded against the claim
- Categories that match your tax return, so the year-end summary lines up
What you can claim, and the records to keep for each type, is covered in our guide to sole trader tax deductions.
Related
- GST and BAS reporting — where these expenses land
- Sole trader tax deductions — what is actually claimable
- Invoicing — the income side of the ledger
Frequently asked questions
Five years from the date you lodge the return the record relates to. Balaana keeps the receipt image against the transaction for as long as your account exists, and exports them with your data if you leave.
You need written evidence for the deductions you claim. Some claims have their own substantiation rules and thresholds, and they change — check the current requirements on ato.gov.au or ask your accountant rather than relying on a rule of thumb.
No. If the supplier is not registered for GST they cannot charge it, so there is no GST credit to claim at 1B. Balaana asks for the GST treatment when you record the expense, which stops that error going into your BAS.
Record the business-use percentage against it. Balaana applies that percentage to both the deduction and the GST credit, which is the treatment the ATO expects for mixed-use items like a phone or a vehicle.