Invoices and records
Cash register tape
A cash register tape is the printed or electronic record produced by a till, listing each sale made, and it can serve as a record of sales for GST and income purposes.
A cash register tape, sometimes called a till roll or register journal, is the running record of sales rung through a cash register or point-of-sale system. It shows the items sold, the prices, the GST component and the payment method. For retailers, cafes and other businesses that make many small cash or card sales, it is often the main original record of takings.
For GST, a cash register tape is helpful because most customers do not ask for a tax invoice on small sales. A business must issue a tax invoice on request for sales of $82.50 or more, but for lower amounts there is no obligation to provide one. The tape or digital end-of-day report lets the business show the total sales and the GST included in them for each BAS period.
On the purchase side, a cash register tape from a supplier may count as evidence for a purchase of $82.50 or less if it shows the date, the supplier and what was bought. Above that amount, a business needs a tax invoice to claim the credit. Some supply chains print tax invoice information on the till receipt, so check what the document actually says before relying on it.
Modern point-of-sale systems replace the paper roll with digital records. These still need to be kept in a form the ATO can access, and be backed up. The end-of-day or Z report is typically the key summary, showing sales by tax code. Make sure the system treats GST-free items, such as basic food, differently from taxable items, as mixed shops often make mistakes here.
A frequent problem is cash takings that do not match bank deposits. Differences might come from tips, floats, refunds, staff purchases or errors, and each should be explained in writing. Another is simply failing to keep the end-of-day reports. If you cannot support the sales figures on your BAS, the ATO can estimate them using benchmarks, which may not favour you.
Cash register records should be kept for five years, along with the reconciliation of takings to the bank. Make it a daily routine to run the report, count the till, and file the totals. This is general information only, so confirm your record obligations with the ATO or a registered tax professional.
Worked example
A bakery's Z report for the day shows total takings of $1,540. Of that, $1,100 relates to taxable items (including GST of $100, which is 1,100 divided by 11) and $440 relates to GST-free bread and plain loaves. The owner files the report, records the GST collected of $100, and later matches the day's total to the bank deposit and card settlement.
Practical tips
- Run and file the end-of-day report every day, because rebuilding sales months later is difficult and may not satisfy the ATO.
- Check that your till is set up to treat GST-free and taxable products differently, and review the codes whenever you add new items.
- Reconcile cash takings to bank deposits and write down the reason for any difference.