- Applies to: Australia
- ✓ Verified Nov 1, 2026 · 1 official source
ATO Compliance Desk · Australian Sole Trader & Tradie Rules
For Australian sole traders claiming vehicle or home-office deductions ("Dext, Hubdoc & Driversnote Alternative Australia (2026–27): ATO $82.50 Docket & 12-Week Logbook Guide"), the ATO permits either the Cents per Kilometre method (88 cents/km up to 5,000 business km = A$4,400 max without receipts) or the 12-week Logbook Method (business-use % applied to all fuel, rego, insurance, and depreciation), plus the 70 cents/hour fixed rate for working from home.
Key Takeaways
- ABN & 47% Withholding Rule: Always display your active 11-digit ABN on every quote and invoice; otherwise business payers must withhold 47% under ATO PAYG rules.
- ATO Rate Benchmarks: Vehicle claims use 88c/km (up to 5,000 km) or a 12-week logbook percentage; work-from-home claims use the 70c/hr revised fixed rate or actual expenses.
- Record Retention: Section 262A of the Income Tax Assessment Act 1936 requires keeping digital or paper tax invoices and expense receipts for 5 years from lodgment.
“As a sole trader, you use your individual tax file number (TFN) when lodging your income tax return, report all business income and deductions in the business items section, and must keep records for 5 years.”
Dext, Hubdoc & Driversnote Alternative Australia (2026–27): ATO $82.50 Docket & 12-Week Logbook Guide
Short answer: Choosing a Dext alternative in Australia—or replacing Hubdoc, Driversnote, and ATO myDeductions—lets a sole trader or tradie avoid paying $20 to $45/month for separate receipt and mileage subscriptions. Under ATO ruling GSTR 2013/1 ($82.50 GST tax invoice rule), TR 2024/3 (electronic 5-year record keeping), and ITAA 1997 Division 28 (91c/km vs 12-week logbook), an on-device app combining Bunnings thermal docket OCR, a 12-week logbook, and 11-digit ABN Tax Invoices meets every ATO rule for $0/month.
⚡ Instant Australian Ute Logbook (91c/km), Bunnings Docket OCR & ABN Tax Invoice Toolkit ($AUD): Calculate your 2026–27 car deduction in the interactive AUD Mileage & Logbook Calculator right below, save your first 5 trips, dockets, or ABN Tax Invoices in the iCloud Web Workspace (5 Free Saves) (or click 🔗 Embed / CSV Template), explore the AU/NZ Tradie & Sole Trader App Store Edition and Business Mileage Logbook Edition, or Download Keel Free on the App Store ($0/mo) (
au-nz-tradies).
Most self-employed Australian sparkies, plumbers, chippy contractors, and mobile consultants end up paying for three disconnected tools: a quoting/invoicing app, a receipt extraction subscription like Dext or Hubdoc, and a standalone GPS mileage subscription like Driversnote—or they rely on the ATO’s free myDeductions module inside the ATO app, which cannot issue customer ABN Tax Invoices or calculate quarterly Simpler BAS (G1, 1A, 1B) figures.
Below is the official Australian Taxation Office (ATO) compliance breakdown for 2026–27, showing exactly what the ATO requires on a scanned docket and a 12-week vehicle logbook, and how Dext, Hubdoc, Driversnote, ATO myDeductions, and Keel compare side by side. For related Australian rules, see our ATO myDeductions sole trader guide, ATO car logbook rules, and how to do a BAS.
How do Dext, Hubdoc, Driversnote, ATO myDeductions, and Keel compare in Australia (2026–27)?
| Feature / ATO Requirement | Dext Solo / Prepare | Hubdoc (Xero) | Driversnote AU | ATO myDeductions | Keel (iOS + Web Workspace) |
|---|---|---|---|---|---|
| Primary Focus | Cloud receipt & bill extraction for accountants | Cloud document capture feeding Xero | Standalone vehicle logbook tracker | Basic individual & sole trader deduction log | All-in-One: ABN Tax Invoices + Quotes + Thermal Docket OCR + ATO Logbook |
| Monthly Subscription Cost ($AUD) | ~$16 to $45+/mo (tiered by document volume) | ~$20 USD/mo standalone (or bundled inside $35–$95+/mo Xero plans) | ~$17 to $22/mo billed annually after 15-trip/month free cap | $0 (Free government app, 2.71★ App Store rating) | $0/mo Core App (No mandatory monthly subscription; optional one-time packs) |
| Issues ATO-Compliant 11-Digit ABN Tax Invoices & Quotes? | No (receipts/bills only) | No (document capture only) | No (mileage only) | No (cannot generate PDF quotes or Tax Invoices) | Yes — instant 10% GST Tax Invoices, Non-GST Invoices & tradie quotes |
| Bunnings / Repco Thermal Docket OCR ($82.50 GST Rule)? | Yes (cloud server OCR) | Yes (cloud server OCR; frequent sync delays reported) | No | Basic photo attachment | Yes — on-device Apple Vision OCR (extracts supplier ABN, date, 10% GST & line items offline) |
| ATO 12-Week Logbook & 91c/km Car Calculator? | Limited mileage expense claim | No | Yes (GPS + iBeacon subscription) | Yes (trips & logbook) | Yes — both 91c/km (up to 5,000 km) and 12-week actual-cost logbook |
Simpler BAS (G1, 1A, 1B) Quarterly Summary? | Requires Xero/MYOB/QBO integration | Requires Xero subscription | No | No BAS calculation | Yes — instant quarterly G1 Total Sales, 1A GST on Sales & 1B GST Credits |
| Bank Account Linking Required? | Pushes bank/accounting sync | Pushes bank/Xero sync | No | No | 100% No-Bank-Link (private on-device ledger + optional iCloud sync) |
What does the ATO actually require for thermal dockets and the $82.50 GST Tax Invoice rule?
When you buy timber at Bunnings Trade, cable at Rexel, plumbing fittings at Reece, or diesel at Ampol, the thermal paper docket starts fading in the hot cab of your ute within weeks. Under ATO Taxation Ruling TR 2024/3 and Goods and Services Tax Ruling GSTR 2013/1, a clear digital photograph or on-device scan replaces the paper docket permanently for the mandatory 5-year retention period, provided your digital record captures the statutory details for that purchase tier:
| Purchase Amount (Including 10% GST) | Purchase Amount (Excluding GST) | Do You Need a Formal “Tax Invoice” to Claim BAS Label 1B GST Credits? | What Your Digital Docket Scan Must Show (ATO Rules) |
|---|---|---|---|
| $82.50 or less incl. GST | $75.00 or less ex-GST | No formal Tax Invoice required for GST credit purposes (though you still need proof of purchase for income tax) | Supplier name, date of purchase, description of the goods/tools, and the total amount paid (cash register docket or EFTPOS receipt with item description) |
| More than $82.50 up to $999.99 incl. GST | $75.01 to $909.08 ex-GST | Yes — must hold a valid Tax Invoice before claiming the GST credit on your quarterly BAS (1B) | 7 ATO details: (1) Words “Tax Invoice”, (2) Supplier’s identity, (3) Supplier’s 11-digit ABN, (4) Issue date, (5) Brief description & quantity of items, (6) GST amount payable (or statement that total includes GST), (7) Extent to which each sale is taxable |
| $1,000.00 or more incl. GST | $909.09 or more ex-GST | Yes — extended Tax Invoice required | All 7 details above PLUS (8) the buyer’s identity or 11-digit ABN printed on the supplier’s tax invoice |
Tradie Audit Trap: An EFTPOS terminal slip that only prints "APPROVED $145.00" without listing what you bought or the supplier’s ABN is not a valid tax invoice under GSTR 2013/1. Always photograph the itemised tax invoice docket at the counter before it fades. See our Australian sole trader expenses and receipts guide for the full deduction checklist.
What are the ATO’s rules for a Driversnote-style car logbook vs the 91c/km method in 2026–27?
Under Division 28 of the Income Tax Assessment Act 1997 (ITAA 1997), sole traders claiming work-related car expenses (for a passenger car, station wagon, or SUV—or a ute that does not qualify as a 1-tonne/commercial vehicle) choose between two statutory methods:
- Method 1 — Cents per Kilometre (
91 cents per kmfor 2026–27, up from 88c/km in 2025–26):- Maximum cap: Up to 5,000 business kilometres per car, per income year (maximum deduction = A$4,550 at 91c/km).
- Substantiation: No 12-week logbook or fuel receipts are required, as the 91c/km rate already includes fuel, rego, insurance, servicing, and depreciation. You only need a diary or digital trip record showing how you calculated your work kilometres (see Australian car expenses cents per km).
- Method 2 — The 12-Week Logbook Method (No 5,000 km Cap — Actual Business % of All Costs):
- How it works: You keep a continuous logbook for at least 12 consecutive weeks, which establishes your business-use percentage (for example,
78% business use) for up to 5 income years unless your driving pattern changes substantially. - What a valid electronic ATO logbook must record:
- The start and end date of the 12-week logbook period;
- The vehicle’s odometer readings at the start and end of the 12-week period;
- The total kilometres travelled during the period;
- For every single business trip: the date the trip began and ended, start and finish odometer readings, kilometres travelled, and a specific business reason (e.g., “Site measure & switchboard quote at 14 King St Parramatta — Client Smith”, never just “Business”);
- Opening and closing odometer readings for each financial year (1 July and 30 June) during the 5-year validity window.
- What receipts you must keep alongside a logbook: Written evidence (tax invoices/dockets) for registration, insurance, servicing, tyres, loan interest, and depreciation—though fuel and oil can be estimated from odometer readings if you miss a bowser docket.
- How it works: You keep a continuous logbook for at least 12 consecutive weeks, which establishes your business-use percentage (for example,
What if you drive a 1-tonne dual-cab ute or panel van? Vehicles designed to carry a load of 1 tonne or more (or 9+ passengers), or vehicles under 1 tonne whose private use is limited strictly to home-to-work travel and minor incidental detours, are treated as other vehicles rather than “cars”—meaning you claim actual business expenses backed by receipts and a representative diary, detailed in our Australian ute logbook & commercial vehicle ATO guide.
Why switching from Dext + Driversnote to a unified local-first ledger saves $600–$950/year
A sole trader paying $25/month for Dext plus $20/month for Driversnote (and $35–$70/month for cloud accounting) spends $540 to $1,380 every year before sending a single quote. With Keel:
- Snap your old invoice or CSV to switch in 10 seconds: Upload a PDF/photo of a previous invoice or export your CSV from Dext, Hubdoc, Xero, or Driversnote via the Switch & Import CSV/ZIP App Store Edition (
?ppid=0dfe27bd-90b3-47f2-92df-72fbf06311a9). - One workflow per job: Quote the job $\to$ convert to an 11-digit ABN Tax Invoice $\to$ snap the Bunnings/Reece thermal docket (
$82.50GST check) $\to$ log the site trip (91c/kmor 12-week logbook) $\to$ export your 5-year ATO & Simpler BAS pack on iPhone.
How do you export your 5-year ATO tax pack and quarterly Simpler BAS (G1, 1A, 1B)?
At the end of each BAS quarter (28 October, 28 February, 28 April, and 28 July) or before lodging your individual tax return on 31 October, your ledger exports a single structured archive containing:
- Simpler BAS Worksheet:
G1Total Sales,1AGST on Sales (1/11thof taxable ABN invoices), and1BGST Credits (1/11thof verified supplier tax invoices over $82.50 incl. GST). - Itemised Docket & Receipt Folder: Every photographed Bunnings, Reece, Rexel, and fuel docket named by date, supplier ABN, and category.
- 12-Week Logbook & 91c/km Schedule: Opening and closing odometer readings, trip-by-trip business purposes, and your calculated Division 28 car deduction.
Frequently asked questions
Can I use a digital photo of a Bunnings docket instead of keeping the paper receipt for the ATO?
Yes. Under ATO Taxation Ruling TR 2024/3, an electronic image or scan of a paper receipt or tax invoice is legally valid for the 5-year ATO record-keeping period provided it is a clear, true reproduction in English showing the supplier’s name, ABN, date, itemised description, total amount, and GST component. Once digitised and backed up safely, you do not need to keep the fading thermal paper.
When do I need a formal Tax Invoice in Australia to claim GST credits on my BAS?
Under section 29-70 of the GST Act and GSTR 2013/1, you must hold a valid Tax Invoice (showing the supplier’s 11-digit ABN and the words “Tax Invoice”) before claiming a GST credit at Label 1B on your BAS for any business purchase costing more than $82.50 including GST ($75.00 excluding GST). For purchases of $82.50 or less including GST, a standard receipt, cash register docket, or invoice is sufficient.
Does an electronic logbook app replace a paper logbook for the ATO 12-week rule?
Yes. The ATO accepts electronic logbooks provided the entries are made at the end of each journey (or as soon as reasonably practical afterwards) and record the start and end dates, start and finish odometer readings, total kilometres, and a specific business purpose for every business trip across at least 12 continuous weeks, plus annual 1 July and 30 June odometer readings.
Can ATO myDeductions issue ABN Tax Invoices or calculate quarterly BAS?
No. The ATO’s myDeductions tool inside the ATO app only logs basic income lines, expenses, and trips for individual tax returns; it cannot generate PDF customer quotes, issue 11-digit ABN Tax Invoices with 10% GST, or calculate quarterly Simpler BAS (G1, 1A, 1B) figures.
How long is an ATO 12-week car logbook valid for an Australian sole trader?
Under Division 28 of the ITAA 1997, a compliant 12-week car logbook is valid for the income year in which you keep it plus the next 4 income years (5 years in total), provided your business-use pattern does not change substantially and you record opening and closing odometer readings every 1 July and 30 June.
| ATO Compliance Line Item | Statutory Rule / Rate | A$95,000 Gross Turnover Example | Net Cash / Tax Impact (AUD) |
|---|---|---|---|
| Gross Invoiced Sales (Incl. 10% GST) | 1/11th GST component (A$75k+ threshold) | A$95,000 incl. GST (A$86,364 ex-GST) | A$8,636 GST collected for BAS |
| Deductible Trade Expenses & Logbook Km | A$19,800 expenses (incl. A$1,800 GST) + 5,000 km @ 88c | A$18,000 ex-GST + A$4,400 car claim | -A$1,800 GST credit → A$6,836 net BAS |
| Taxable Sole Trader Net Profit | Ex-GST Income minus allowable deductions | A$86,364 - A$22,400 = A$63,964 | Assessed at 2025–26 resident brackets |
| Income Tax + 2% Medicare Levy | 0% to A$18.2k · 16% to A$45k · 30% to A$135k | A$9,977 income tax + A$1,279 Medicare | A$11,256 total tax (17.6% effective) |
Calculated using 2025–26 resident tax rates (Stage 3 tax cuts) and 88c/km ATO cents-per-kilometre rate. Verify PAYG instalments via myGov/ATO Online.

Create an Australian ABN Tax Invoice with 10% GST
Generate a compliant Australian sole trader invoice or tradie quote in our free invoice maker and quote maker with automatic 10% GST math.
Next
What do I owe, and when?
Australia ATO 5-Year Record Keeping Rules for Sole Traders (2026–2027)
When the first job is booked, Keel keeps the invoices and receipts for it.What do I owe, and when?
Knowledge Graph · Interactive Mind Map