You need to keep records for five years (in most cases) from the date you lodge your tax return. Records may include income statements, payment summaries and receipts. You will receive documents that are important for doing your tax during the income year.
The importance of keeping records
Keeping good records helps you and your tax adviser:
- to provide written evidence of your income and expenses
- prepare your tax return
- to ensure you are able to claim all your entitlements
- prove the information you provided in your tax return (in case we ask you)
- reduce the risk of tax audits and adjustments
- improve communication with us
- resolve issues that relate to a dispute of your assessments or adjustments
- avoid exposure to penalties.
Keeping good records reduces the cost of managing your tax affairs. If you use a tax advisor, you can reduce the time they spend sorting and preparing your records. This will give them more time to ensure you claim your entitlements.