Guess what guys and girls, the Australian Taxation Office requires you to keep records for five years after they were created. This means that you need to keep records of your income, expenses, and other tax-related information including diaries and logs for at least five years after you have lodged your tax return.
There are also some situations where you may need to keep records for longer than five years. For instance, if you own assets, you may be required to keep your records for a longer period. Additionally, if you use information from a record in your tax return in one financial year and then use that information again in a future return, you need to keep that record until the period of review for the later tax return has ended.
You need to keep accurate records to meet your tax obligations and avoid penalties. The ATO can ask for your records for up to five years (and for some requirements even more), so it pays to be organized. It’s a good idea to use a professional record-keeping software like Deduction Grabber from Gotax, a state of the art, sexy piece of app technology.
As an individual taxpayer in Australia, you should keep your tax records for at least five years after they were created. However, there are some situations where you may need to keep records for longer. Keeping accurate records is essential for meeting your tax obligations and avoiding penalties. So, make sure to keep those records in order!