A missing receipt is rarely just a missing receipt at tax time. It can mean extra time reconstructing a claim, uncertainty about what you can deduct, or a return that takes longer to prepare than it should. When people search for “tax records to keep Australia”, they usually want a clear answer: what should stay, what can go, and how long do the records need to be available?
For most Australians, a sensible recordkeeping system reduces stress, supports accurate tax returns and makes it easier to respond if the ATO asks a question later. The records you need will depend on whether you are an employee, investor, sole trader or business owner, but a few practical rules apply across the board.
How long should you keep tax records in Australia?
As a general rule, keep tax records for five years from the date you lodge your tax return. This includes documents that support income you received and deductions you claimed.
The five-year period is a useful starting point, not a reason to automatically delete every older document. Some records need to be kept longer because they affect a future tax outcome. Records for an asset, such as an investment property, shares or business equipment, should generally be retained until five years after the relevant capital gains tax event. In practical terms, that often means keeping purchase and improvement documents for as long as you own the asset, then for a further five years after selling it.
Businesses may also have obligations outside income tax. For example, employee records are generally required to be kept for seven years under workplace laws. Superannuation and payroll records have their own requirements. Where rules overlap, keeping the record for the longer period is usually the safer and simpler approach.
Tax records to keep Australia-wide as an employee
If you earn salary or wages, much of your income information may appear in ATO pre-fill data. That is helpful, but it does not replace your responsibility to check the information and keep evidence for your claims.
Keep records of income that may not be fully captured in your pre-fill information, including allowances, lump sum payments, side income, overseas income or income from occasional contract work. Your payslips can also be useful if you need to check amounts shown on your income statement.
For work-related deductions, retain invoices, receipts, diary notes and any other evidence that explains the expense and its connection to earning your income. Common examples include protective clothing, tools, professional memberships, training that directly relates to your current work, and work-related travel.
A bank transaction by itself may prove that money was spent, but it often does not show what was bought or whether the expense was work-related. A proper receipt or invoice is stronger evidence because it should identify the supplier, date, amount and nature of the purchase.
Motor vehicle and travel claims
Vehicle claims need particularly careful records. If you use the logbook method, keep your logbook, odometer readings and evidence of fuel, servicing, registration, insurance and other running costs. A valid logbook is generally maintained for a continuous 12-week period and may support claims for up to five years, provided your work-use pattern does not substantially change.
If you claim work-related kilometres using the cents-per-kilometre method, maintain a reasonable record showing how you calculated the kilometres. This could include a diary of work trips. Commuting between home and your usual workplace is usually private travel, even if you perform some work at home before leaving.
For overnight work travel, keep accommodation invoices, transport records and meal receipts where relevant. A travel diary may also be needed in some circumstances, especially where travel includes private activities or extends over several days.
Working from home records
Working from home claims are another area where recordkeeping matters. Under the fixed-rate method, you need a record of the hours you worked from home across the year, as well as evidence for costs that are claimed separately, such as mobile and internet expenses or equipment.
If you use an actual-cost method, the evidence needs to show both the cost and the work-related portion. This may involve bills, invoices, floor-area calculations, usage records or other reasonable workings. The right method depends on your situation, so it is worth checking the requirements before assuming the method that produced the best result last year will suit this year.
Records for investments, property and other income
Investment income can involve more paperwork than people expect. Keep annual statements for bank interest, dividends and managed fund distributions, along with records of investment-related expenses such as adviser fees, account-keeping fees and interest on money borrowed to invest.
For shares and managed investments, retain contract notes for purchases and sales, dividend statements, distribution statements and documents showing any tax-deferred amounts or capital gains adjustments. These records help establish the asset’s cost base when it is sold.
Rental property owners should keep records of rent received and property expenses, including agent statements, rates, insurance, repairs, loan interest and depreciation reports. It is also wise to keep documents distinguishing repairs from capital improvements. Replacing a broken tap may be a repair, while renovating a kitchen or adding a new structure is usually treated differently for tax purposes.
Keep settlement statements, purchase contracts, sale contracts and records of legal fees, stamp duty and capital improvements for any property. These documents can be essential when calculating capital gains tax, even if the sale happens many years after the original purchase.
What sole traders and businesses should retain
For sole traders, partnerships, companies and trusts, organised records are the foundation of accurate BAS, GST reporting, payroll and year-end tax work. Keeping business and personal spending separate through a dedicated business bank account makes this much easier.
Your business records should show both money coming in and money going out. They should be detailed enough to explain each transaction and allow your accountant to prepare financial statements, income tax returns and BAS lodgements with confidence.
Key records commonly include:
- sales invoices, receipts and point-of-sale reports;
- supplier bills, purchase invoices and expense receipts;
- business bank statements, loan statements and credit card statements;
- BAS, GST working papers and lodged activity statements;
- payroll reports, timesheets, wage records, PAYG withholding and superannuation payment evidence;
- asset purchase documents, finance agreements and depreciation schedules; and
- contracts, lease agreements and records of stock or inventory where applicable.
If your business is registered for GST, tax invoices are particularly important for supporting input tax credit claims. Not every purchase will require a formal tax invoice, but having clear documents in place avoids unnecessary guesswork when preparing your BAS.
Digital records are acceptable, if they are reliable
You do not need a filing cabinet full of fading paper receipts. Digital copies are generally acceptable if they are clear, complete and capable of being reproduced when needed. Scanning receipts as you receive them or using accounting software can make the process far more manageable.
A practical system might use separate folders for income, expenses, vehicles, investments, property, payroll and BAS. Name files consistently, such as “2025-26 mobile invoice July” or “Vehicle service 14 October 2025”. Small habits like this save considerable time when records are needed months later.
Back up your files securely and make sure access is not limited to one lost mobile or one staff member’s email account. Records should be kept in English, or in a form that can be readily converted into English. Protecting financial information is also essential, so use secure passwords and consider who within the business needs access.
A simple habit that prevents tax-time pressure
Set aside a short time each week or month to capture receipts, reconcile bank transactions and file documents. For a sole trader or business owner, regular bookkeeping is far less disruptive than trying to sort out a full year of transactions before a BAS or tax deadline.
If you are unsure whether a document matters, keep it until you have received advice. Hire An Accountant can help you put a straightforward recordkeeping process in place that suits the way you work, so your records support better decisions as well as a smoother tax return.
