How Long Should You Keep Your Tax Records? (It’s Longer Than You Think)
October 29, 2026
Every year, someone tells us they threw out their receipts after the tax return was lodged. It’s an understandable instinct, but it’s one of the more expensive mistakes a taxpayer can make. Here’s a plain-English guide to what to keep, and for how long.
The basic rule: five years
For most records, the ATO requires you to keep them for five years. For work-related expenses, donations and similar deductions, that clock starts from the date you lodge your return. For business records, it runs from when the record was prepared or the transaction was completed, whichever is later.
Why five years? Because the ATO can look back
The ATO can generally amend an assessment within a set period. For individuals and small businesses with simple tax affairs, that is usually two years from the date of assessment. For most other taxpayers, it’s four years. Where there is fraud or evasion, there’s no time limit at all. Keeping records for five years means you can back up every figure on the return for as long as the ATO can reasonably ask about it.
Some records need to be kept much longer
- Property and share purchases. Records that prove your cost base for capital gains tax need to be kept for five years after the asset is sold, which could be decades after the purchase. Purchase contracts, stamp duty, legal fees, and records of capital improvements all matter.
- Rental properties. Keep purchase and improvement records, depreciation schedules and loan documents for as long as you own the property, plus five years after you sell it.
- Company and trust records. Company registers, minutes, trust deeds and resolutions should be kept for as long as the entity exists. Distribution resolutions are especially important for trusts.
- Losses carried forward. If you’re claiming a past loss in a future year, keep the records that support the loss until the year you use it up, plus the usual period after that.
- Employee records. Under Fair Work rules, employers generally need to keep time and wage records for seven years.
What counts as a valid record?
Records need to be in English (or readily translatable), and they need to show what was bought, who from, when, how much, and for what purpose. Photos and scans of paper receipts are fine, as long as they are clear and complete. Bank statements alone often aren’t enough, because they show you paid someone but not what for. For work-related and business expenses, add a short note on the business reason if it isn’t obvious.
Digital habits that save you at tax time
- Photograph or scan receipts when you get them, not at the end of the year.
- Use a consistent folder structure, such as one folder per financial year with sub-folders for income, expenses, property and investments.
- Back up your records somewhere other than your phone or laptop.
- Keep the documents that don’t change much (contracts, trust deeds, share parcels) in one permanent folder, separate from annual paperwork.
- Don’t rely on an online portal to hold your records for you. Accounts close, subscriptions lapse and statements disappear, so download what you need.
What if I've lost records?
It happens, particularly after a move, a flood or a laptop failure. Often missing information can be recovered from banks, suppliers, solicitors or the ATO. Where records genuinely can’t be found, there are sometimes ways to make a reasonable estimate, but they carry more risk. Tell us early and we’ll help work out the best approach.
How Brick Road Accounting can help
We can set up a simple record-keeping routine that suits you, whether you’re an employee with a few deductions, a landlord, or a business owner. Get in touch via our contact page or email info@brickroadaccounting.com.au.
This article is general information only and doesn’t take your circumstances into account. Please speak to us before acting on it.
Dont Hesitate To Contact Us
Have a question about your tax, accounting, or business needs? Our team is here to help. Get in touch today.