What Documents You Must Keep (And For How Long) Under Australian Tax Rules

Keeping accurate business records is a core requirement for all Australian businesses, regardless of size or structure. Many business owners first look into bookkeeping services in Canberra when they realise that record-keeping is not just about staying organised, but also about meeting specific Australian Taxation Office obligations. Understanding what documents must be kept, how long they must be retained, and how they can be stored helps reduce compliance risks and administrative stress.

This guide explains the key record-keeping requirements under Australian tax rules, with a focus on practical information relevant to small and medium businesses operating in Canberra and the ACT.

The ATO requires businesses to keep records that explain all transactions and financial positions. These records support information reported in tax returns, activity statements, and other lodgements.

Record keeping allows businesses to:

• Substantiate income and expenses
• Calculate tax liabilities correctly
• Track business performance over time
• Respond to ATO reviews or enquiries

Bookkeeping services are often used to help maintain records in line with these requirements.

The general rule under Australian tax law is that most business records must be kept for five years. The five-year period usually starts from the date the record was prepared, obtained, or the transaction was completed, whichever is later.

This applies even if a business:

• Ceases trading
• Changes structure
• Is no longer registered for GST

In some situations, records must be kept for longer than five years.

Businesses are required to keep records that show all income earned and expenses incurred. These records must be written in English or be easily translated.

Common records include:

• Sales invoices and receipts
• Purchase invoices and expense receipts
• Bank statements and deposit records
• Cash register and point-of-sale records
• Contracts and agreements

Bookkeeping Canberra providers often assist businesses in maintaining these records consistently.

Income records document money received by the business. These records help support income reported on tax returns and BAS statements.

Examples include:

• Tax invoices issued to customers
• Records of cash and electronic sales
• Bank deposit summaries
• Records of government grants or incentives



All income records must clearly show the date, amount, and source.

Expense records show money spent in carrying on the business. These records are necessary to support deductions claimed.

Examples include:

• Supplier invoices
• Receipts for operating expenses
• Lease and rental agreements
• Utility and service bills

Records should show who the expense was paid to, the date, the amount, and what was purchased.

If a business employs staff, additional record-keeping obligations apply. Employee records must be kept even after an employee leaves.

Required payroll records include:

• Wages and salary payments
• PAYG withholding amounts
• Superannuation contribution records
• Leave entitlements and balances

Some employee records may need to be retained for longer than five years, depending on the record type.

Businesses registered for GST must keep records that support information reported on Business Activity Statements.

These records include:

• Tax invoices received and issued
• Adjustment notes
• Calculations used to prepare BAS
• Records of GST-free or input-taxed supplies

Bookkeeping services often support accurate BAS preparation through consistent record maintenance.

Records relating to assets must be kept for the period of ownership plus five years after the asset is sold or disposed of.

These records may include:

• Purchase contracts
• Improvement and maintenance records
• Depreciation schedules
• Sale or disposal documentation



This extended retention period is important for capital gains tax calculations.

While five years is the general rule, retention periods can vary.

Common timeframes include:

• Most tax records: five years
• Employee records: at least five years, sometimes longer
• Asset records: ownership period plus five years after disposal
• Records related to disputes or amendments: until finalised plus five years



Businesses should consider the nature of each record when determining retention timeframes.

The ATO allows records to be kept in either physical or electronic formats, provided they are accurate, complete, and accessible.

Acceptable formats include:

• Paper records
• Accounting software files
• Scanned documents
• Cloud-based storage systems

Records must be easily retrieved and readable for the full retention period.

Many businesses now use digital systems to manage records. Digital record-keeping is acceptable as long as the records remain secure and unchanged.

Key considerations include:

• Regular data backups
• Secure access controls
• Clear file naming and organisation
• Ability to produce records if requested



Bookkeeping Canberra businesses increasingly rely on digital systems to support compliance.

Failing to keep required records can create compliance issues. The ATO may impose penalties if records are missing, incomplete, or inaccurate.

Lack of records can also make it difficult to:

• Support deductions or claims
• Respond to audits or reviews
• Understand business performance



Consistent record keeping helps reduce these risks.

Regular review of records helps ensure information remains accurate and complete. This may involve reconciling accounts, filing documents, and checking retention dates.

Ongoing organisation makes it easier to:

• Locate records when needed
• Meet reporting deadlines
• Identify missing information early



Many businesses engage bookkeeping services to support this process.

Record-keeping requirements apply to all businesses, regardless of size or industry. Understanding what documents must be kept and for how long supports compliance and informed decision-making.



Clear systems and consistent practices reduce uncertainty and administrative burden.

We at Figures Right support businesses with bookkeeping services in Canberra, designed to help maintain records in line with Australian tax requirements. If you would like help understanding record-keeping obligations or setting up systems to manage business documents, visit https://www.figuresright.com.au/ to learn more about our bookkeeping services and how we can assist with compliance-focused record management.