Record-Keeping and Expenses for Independent Support Workers
04 September 2026
Record-Keeping and Expenses for Independent Support Workers
The support work itself might not change much when you go independent, but what happens around it does. Nobody else is tracking your income, sorting your expenses, or reminding you what to keep for tax time - that's now yours to manage. None of it is complicated once you have a habit in place. Here's what the ATO actually expects, and the general rules for what you can claim.
In short: as an independent support worker, you need to keep records of your income and expenses for at least 5 years, and the ATO's test for claiming a deduction comes down to three things: you spent the money yourself, it's directly related to earning your income, and you have a record to prove it. Beyond those general rules, whether a specific expense is deductible for you is a question for a registered tax agent or the ATO, not a generic checklist.
If you haven't yet decided whether to operate as a sole trader or set up a company, sole trader vs company: choosing a business structure as a support worker covers that decision first - the record-keeping habits below apply either way, though the exact retention period differs slightly by structure.
Why this matters more once you're independent
As an employee, someone else's payroll system handled most of this. As an independent contractor setting your own rate through CareVicinity, your income and your expenses are yours to track, and your tax return depends on having that information ready when you need it. How rates and payments work covers how your payout after the platform fee is calculated - the figure that starts every record you keep. This isn't a CareVicinity requirement - it's a standard part of running any small business in Australia, and it applies the same way whether your income comes from one platform or five.
What records you actually need to keep
Per business.gov.au, a small business (including a sole trader) needs to keep records of:
All income and sales transactions
All business expenses, including cash purchases
End-of-year lists of who owes you money and who you owe
Records for any assets or stock the business holds
Bank records
GST records, if you're registered for GST
Records for any employees or contractors you engage
Records need to be in English, or able to be translated into English easily. For most independent support workers, the practical version of this is simpler than the full list suggests: what you were paid for each job, what you spent running the business, and the bank records that back both up.
How long to keep them
Most business records need to be kept for 5 years, counting from whichever is later: when you got the record, or when the transaction or activity it relates to was completed. Some records need longer - for example, records tied to an asset's decline in value should be kept until that asset is fully written off. If you're a sole trader, 5 years is the standard period; a company keeps financial records for 7 years, which is one of the practical differences covered in sole trader vs company.
The general rule for claiming an expense
The ATO applies three general rules ("golden rules") to work out whether an expense can be claimed as a deduction:
You must have spent the money yourself, and not been reimbursed for it.
The expense must be directly related to earning your income.
You need a record, usually a receipt, to prove it.
Where something is used for both business and personal purposes, only the business-use portion can be claimed - not the whole cost. These are general rules, not a determination of what's deductible for your specific situation. That determination is exactly what a registered tax agent is for.
Common categories worth understanding
The ATO recognises broad categories of home-based business expenses, which is relevant if you manage bookings, invoicing, or admin from home between client visits. These generally fall into:
Occupancy expenses - a portion of mortgage interest or rent, council rates, and house insurance, but only where part of your home genuinely has the character of a place of business, not just somewhere you occasionally do admin
Running expenses - things like electricity, phone, and the decline in value of equipment used for the business, which apply more broadly even without a dedicated business space
The exact treatment depends on your individual circumstances, including how you use your home for the business and which structure you operate under. This article isn't going to hand you a list of "things support workers can claim" beyond what's confirmed above - a registered tax agent can work through your actual situation and tell you what applies.
Keeping business and personal separate
The single habit that makes all of the above easier is keeping your business finances separate from your personal ones from the start - a dedicated bank account for business income and expenses, even as a sole trader where you're not legally required to have one. It turns "did I spend that for the business or for myself" from a guessing game at tax time into something you can see at a glance.
What happens if your records aren't good enough
If the ATO finds a business's record-keeping doesn't meet requirements, the consequences can include penalties, and in some cases being required to complete a record-keeping course. It's a real, current enforcement mechanism, not a hypothetical - one more reason a simple habit set up early is worth more than a good system you mean to start later.
A simple habit that makes tax time easier
You don't need accounting software from day one. A consistent weekly or monthly routine - logging what you were paid, filing receipts as they come in, and reconciling against your bank statement - covers most of what the ATO expects from a sole trader. As your business grows, that's the point to revisit whether dedicated software or a bookkeeper earns its cost. This is editorial guidance, not an ATO requirement - the requirement is accurate, complete records; how you produce them is up to you.
FAQ
Do I need to keep paper receipts, or is digital fine? The ATO doesn't require paper specifically - digital records are fine as long as they're accurate, complete, and can be produced in English on request.
What if I'm not registered for GST? You still need to keep records of your income and expenses either way. GST-specific records (tax invoices, GST credits) only apply once you're registered - see ABN and GST basics for support workers for the registration threshold.
Does CareVicinity provide any of this for me? CareVicinity shows your rate, the 12.5% platform fee, and your payout for each job, but it doesn't provide tax advice, determine what you can claim, or lodge anything on your behalf. Record-keeping and your tax return remain yours to manage, same as any independent contractor.
What if I've fallen behind on my records? Start now rather than trying to reconstruct everything at once, and talk to a registered tax agent about catching up - they deal with this regularly and can advise on your specific situation.
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Good records are one part of running your business well. See what it takes to get started delivering care through CareVicinity.