Split a receipt with business and private purchases

One payment can contain stock, office supplies, something for home and an item nobody remembers buying. Coding the whole bank line to “supplies” loses those distinctions. Start with the receipt and account for every dollar, including the dollars you aren't claiming.

Mark each line before opening the bank feed

For each item, record its gross price, GST shown, business purpose and business-use percentage. An item used wholly at home has no business portion. A shared item needs a reasonable basis for its split, such as quantities taken to the shop and quantities kept at home.

Don't apply a blanket percentage to the receipt because one item was shared. The ATO's private versus business use guidance explains that GST credits for mixed-use purchases are limited to business use. This worksheet assumes ordinary creditable business purchases; input-taxed activities, entertainment and special arrangements need separate review.

A six-item receipt that balances to $242

This fictional GST-registered grocery business buys shop supplies, milk for resale and some private items in one transaction. The example assumes a valid supplier tax invoice, the GST amounts shown below and eligibility for the supported business portions. The gift pack's purpose is unknown, so no GST is claimed for it yet.

Receipt line	Gross / GST shown	Business gross	Private gross	Unresolved	Supported GST credit
Milk for resale	$22 / $0	$22	$0	$0	$0
Receipt rolls for shop	$33 / $3	$33	$0	$0	$3
Shop floor cleaner	$44 / $4	$44	$0	$0	$4
Private pet food	$22 / $2	$0	$22	$0	$0
Shared cleaning supplies: 60% shop	$55 / $5	$33	$22	$0	$3
Gift pack: purpose not confirmed	$66 / $6	$0	$0	$66	$0 pending review
Totals	$242 / $20	$132	$44	$66	$10

Payment check: $132 business gross + $44 private + $66 unresolved = $242. Within the supported business portion, $122 net cost + $10 GST = $132.

Original ASBG illustrative receipt, not a retailer's invoice. The table assumes the displayed tax treatment; it doesn't prove a real gift or shared purchase is deductible.

The shared cleaning supplies are the only line with a percentage split: $55 × 60% = $33 business use and $5 × 60% = $3 GST. Keep a note explaining the 60%, such as three of five equal packs taken to the shop. If the packs differ in size or price, that simple quantity split won't work.

The milk line shows why dividing the entire receipt by eleven is wrong. It has no GST in this example. The pet food shows a different reason for no claim: GST was charged, but the purchase was private.

Keep the unresolved line out of finished claims

Ask the purchaser what the gift pack was for and obtain the relevant approval or business explanation. Even after its purpose is known, client or employee gifts may need tax review. Don't convert “I can't remember” into “GST-free business expense”.

Agree an unresolved-item treatment with your bookkeeper that records the $66 bank outflow without claiming unsupported GST. Assign someone to resolve it and a review date. A holding balance should remain on the exception list until it is dealt with; it isn't a permanent category for difficult receipts.

Enter the allocation once

Check whether a bill or expense already exists. If it does, correct that record rather than creating another one from the bank line. Attach the receipt and split calculation, then match the full $242 payment to the completed entry.

The private portion needs the appropriate owner-related treatment for your entity. A company can't automatically use a sole trader drawings category. If the owner paid the whole receipt personally, use the reimbursement record to show which portion the business has approved for repayment.

Tax code labels differ across software. The GST-free versus BAS excluded guide explains the distinction, while your agent should settle uncertain codes or purchases connected with special GST rules.

File the explanation with the receipt

Keep the original itemisation, business-use calculation, approval, ledger reference and final payment match together. If the receipt is unreadable, request a replacement before guessing from a bank description. Our record-keeping guide covers keeping those documents usable.

Key takeaways

• Reconcile the whole payment even when you can claim only part of it.
• Separate GST-free items from private items with GST in their price.
• Resolve unknown items with evidence and appropriate review.

Where to get help

Use the ATO partial-credit guidance linked above for the general principle. Take unclear business-use or gift treatment to a registered BAS or tax agent. Continue with the bookkeeping and BAS collection.