When you’re starting a small business, it can be confusing to balance all the administrative work that comes with your everyday operations, including keeping track of and handing out receipts. In this article, we go over when businesses must provide receipts, requirements for receipts, and the importance of receipts for your customers and your small business.
Requirements for a receipt
Receipts are only mandatory for transactions of over $75. For anything under $75, they’re only mandatory when a customer asks for one within a reasonable time from the transaction, and this is only due within 7 days of their request. However, it’s always good practice to provide a receipt regardless of what value the transaction is to avoid confusion!
A receipt can come in a number of forms, including:
- A cash register receipt
- A tax invoice
- A credit card or debit card statement
- A lay-by agreement
- A handwritten receipt
- A digital receipt
Regardless of what form it comes in, your receipt must include the following:
- Your business name
- Your Australian Business Number or Australian Company Number
- The date of the transaction
- What goods or services you sold in that transaction
- The price for the goods or services you sold in that transaction
Itemised bills for services
If your business provides services, customers can also ask for an itemised bill for the transaction, which outlines the price breakdown. This includes how the total price was calculated, and, if applicable, what your hourly rate is, how much time you spent on your services for that customer, and your cost of materials for that transaction.
Customers can request for an itemised bill within 30 days of when the service is provided, or within 30 days of when you bill them for the service, whichever one is later. You then have to provide the itemised bill within 7 days of that request, free of charge.
Why are receipts important?
Receipts are important for both consumer rights and administrative purposes.
Businesses can ask for a receipt if customers seek a repair, replacement or refund of their purchase. These are consumer rights and guarantees that can’t be taken away or contracted out of, so it’s best to provide receipts to make the exercise of such rights and guarantees as smooth as possible. Read more about consumer guarantees in our article here.
From an administrative standpoint, it’s also useful to give receipts as you’re also able to make a copy for yourself. This helps with documenting your finances and calculating tax, so it’s a win-win for both you and your customers!
What Next?
Need advice about the legal requirements to run your business? Contact us for a free, no-obligation chat.
