✅ Updated 2026 — pricing verified

Every receipt you lose is a deduction you're not claiming. At a 32.5% marginal tax rate, a $500 receipt you throw away costs you $162.50 in extra tax. Multiply that across a year of lost receipts and you can see why good receipt tracking is worth paying for.

📋 In This Article

  1. →Quick verdict
  2. →Dext reviewed
  3. →Rounded reviewed
  4. →Hubdoc reviewed
  5. →Full comparison
  6. →FAQs

Quick Verdict

Best for most tradies: Dext — the most accurate receipt extraction and best accounting software integration. Worth every cent for tradies with significant business expenses.

Best for sole traders on a budget: Rounded — built for Australian sole traders, includes invoicing and BAS prep alongside receipt tracking for $15/month.

Already on Xero: Hubdoc — included free with Xero subscriptions, handles receipts and bank statements reasonably well.

Dext — Best Overall for Tradies

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Dext ⭐ Editor's Pick

Best receipt capture accuracy — integrates with Xero, MYOB and QuickBooks
From $25/month
14-day free trial

Dext (formerly Receipt Bank) is the gold standard for receipt capture. You snap a photo of any receipt with your phone — a fuel receipt, a Bunnings invoice, a supplier docket — and Dext extracts the supplier, amount, date and GST automatically. It then pushes the data straight into Xero or MYOB with the receipt image attached.

Why it's the best for tradies: Accuracy is exceptional. It handles crumpled, faded, and hand-written receipts better than any competitor. You can also forward email receipts and invoices directly to Dext for automatic processing.

  • Smart extraction from photos, emails and PDFs
  • Integrates directly with Xero, MYOB, QuickBooks
  • Categories and GST calculated automatically
  • Supplier rules so recurring purchases are always coded correctly
Try Dext Free for 14 Days →

Rounded — Best for Sole Traders

🟠

Rounded ⭐ Best Value

All-in-one for sole traders — invoicing, expenses, BAS and receipt tracking
From $15/month
30-day free trial

Rounded is built specifically for Australian sole traders. It combines invoicing, expense tracking, receipt capture and BAS preparation in one simple app. The receipt tracking isn't as sophisticated as Dext, but it's good enough for most sole trader tradies — and the all-in-one approach means you're only paying for one subscription.

If you're a sole trader electrician, plumber, carpenter or other tradie who wants one simple tool rather than a stack of apps, Rounded is the pick.

Try Rounded Free for 30 Days →

Full Comparison

AppPriceReceipt CaptureAccounting IntegrationBAS PrepBest For
Dext ⭐ Best From $25/mo ✓ Excellent Xero, MYOB, QBO Via integration Tradies on Xero/MYOB
Rounded From $15/mo ✓ Good Standalone ✓ Built-in Sole traders
Hubdoc Free with Xero ✓ Good Xero only Via Xero Xero users
Google Photos Free ✗ Manual None None Backup only

Does the ATO accept digital receipts?

Yes. The ATO accepts digital copies of receipts as valid records, provided the image is a true and clear representation of the original. Apps like Dext and Rounded produce ATO-compliant records. You don't need to keep paper receipts if you have a good digital copy.

What happens if I lose a receipt?

If you can't produce a receipt, the ATO may disallow the deduction on audit. For claims under $10 no receipt is required. For amounts between $10 and $75 you can sometimes use bank or credit card statements. Above $75 you generally need a proper receipt or tax invoice.

Is receipt tracking software tax deductible?

Yes — subscriptions to business software including Dext, Rounded and Xero are tax deductible business expenses. Claim the full cost on your tax return.

## Receipt Tracking for Vehicle & Fuel Expenses: The Numbers That Matter Vehicle expenses are typically the biggest deduction for tradies, and they're also the easiest to lose documentation on. The ATO allows you to claim either actual expenses (with receipts) or the simplified cents-per-kilometre method at 88c/km for 2026. Here's where receipt tracking apps save you serious money: if you're doing $80,000 worth of work travel annually, the difference between claiming actual expenses versus the km rate can be $3,000–$5,000 depending on your vehicle's fuel efficiency and maintenance costs. Most receipt apps now integrate with mileage tracking. Tradify, for example, automatically logs job locations and calculates distance between sites. This means you're not manually entering kilometres—the app does it, and you've got timestamped proof the ATO will accept. **What to photograph on fuel receipts:** - Date and time clearly visible - Fuel brand and location - Litres purchased and price per litre - Total amount - Your registration plate (optional but helps with audits) Don't just snap the total. The ATO has cracked down on generic fuel receipt photos. They want evidence the fuel actually went into your work vehicle, not your personal car or quad bike. Geotag your photos if your app supports it—this creates an audit trail showing you filled up at genuine fuel stations near job sites. For tools and equipment, separate your receipts into three categories within your app: items under $300 (instant deduction), items $300–$20,000 (depreciate over time, except until 30 June 2026 when instant write-off applies), and items over $20,000 (depreciate over asset life). Receipt apps with smart categorisation save you time come tax time and reduce ATO queries. ## Managing Subcontractor & Labor Payments: Documentation Standards If you're paying other tradies, apprentices, or labor hire, the ATO requires different documentation than fuel receipts. This is where many owner-operators slip up—they don't realize receipt tracking apps handle contractor payments differently. **The ATO expects:** - ABN details of the contractor - Date of work - Nature of work performed - Amount paid - Payment method proof (bank transfer screenshot, receipt, invoice copy) Receipt apps with built-in contractor invoicing (like Xero) automatically create this audit trail. You're not just storing a photo—you're creating a permanent record linked to your profit-and-loss statement. **Critical point:** If you're paying someone without an ABN or without requesting one, you're personally liable for unpaid tax. The ATO actively pursues tradies on this. A good receipt app won't let you complete a contractor payment entry without capturing ABN details—use this as your safety check. Payments under $450 (including GST) to contractors without ABNs require different handling. Your receipt tracking app should flag these differently or alert you to seek professional advice. Don't just photograph a bank transfer and call it done.

TIP: Set up automated recurring receipt categories in your app for weekly suppliers (concrete, electrical wholesalers, hire companies). Most apps let you create templates. When you photograph a receipt from your regular supplier, the app auto-categorises it. This cuts data entry time by 60% and reduces miscategorisation errors that trigger ATO letters.

## Receipt Tracking Apps: Feature Comparison for Australian Tradies | **Feature** | **Dext** | **Xero** | **Tradify** | **Wave** | |---|---|---|---|---| | **Receipt scanning** | OCR (reads text automatically) | Manual + OCR | Basic photo upload | OCR included | | **Vehicle mileage tracking** | No | No | Yes (integrated) | No | | **GST categorisation** | Yes | Yes | Yes | Basic | | **Contractor ABN capture** | Optional | Yes | Yes | No | | **Australian tax guides** | Generic | ATO-specific | Tradie-specific | Generic | | **Mobile app (offline)** | Yes | Yes | Yes | Yes | | **Price (AUD/month)** | $15–$50 | $13–$130 | $25–$99 | Free–$30 | | **Best for** | Volume processors | Integrated accounting | Job-based tracking | Solopreneurs | **Real tradie scenario:** You're on a job site, buy $280 in plumbing supplies, $120 in fuel, and pay a subbie $950. In Tradify, you photograph all three receipts in sequence. The app geo-tags the location, links receipts to the specific job, flags that the subbie payment needs ABN verification, and automatically categories the supplies as materials. By the time you're packing up, your bookkeeping for that day is 90% complete. With Wave, you'd manually enter all three, categorise them, and note the ABN separately. That's 15 minutes saved per day × 250 working days = 62 hours annually. At $80/hour billed rate, that's $4,960 in recovered time—more than enough to cover a premium receipt app subscription several times over.

Do I need to keep the physical receipt if I've photographed it?

The ATO accepts digital copies as primary evidence if they're clear, legible, and captured at point-of-purchase. You don't legally need to keep the paper receipt. However, many tax agents recommend keeping originals for 5 years anyway, as a backup if an app image is disputed. Some apps (like Dext) store receipts indefinitely in their cloud, which actually provides better protection than a shoebox of fading paper receipts.

What happens if I lose a receipt for a $500 purchase?

You cannot claim it. The ATO requires original or scanned receipts for any expense over $75. Below $75, you can claim based on a diary record or bank statement, but the ATO will challenge this in an audit. This is exactly why receipt tracking apps are essential—they prevent you losing $500 in deductions (costing $162.50 in extra tax at 32.5% marginal rate). A $15/month app prevents this one loss paying for itself.

Can I claim the cost of a receipt tracking app as a tax deduction?

Yes, completely. Subscription fees for accounting software, receipt tracking apps, and cloud storage for business records are all deductible as business expenses. Even if you're claiming the simplified vehicle expenses method, the app cost itself is claimable. It's a direct business cost.