Do you keep your records once your tax is lodged?

During the financial year you’ll receive documents that are important for doing your tax, such as payment summaries, receipts, invoices and contracts.

Generally, you need to keep these for five years from when you lodge your tax return in case we ask you to substantiate your claims.

Records you need to keep include:

• payment summaries from payers, including your employer and the Department of Human Services
• statements from your bank and other financial institution showing the interest you’ve earned
• dividend statements from companies
• summaries from managed investment funds
• receipts or invoices for equipment or asset purchases and sales
• receipts or invoices for expense claims and repairs
• contracts
• tenant and rental records.

If your total claim for work-related expenses is more than $300, you must have written evidence to prove your claims.

If you acquire a capital asset – such as an investment property, shares or managed fund investment – start keeping records immediately because you may have to pay capital gains tax if you sell the asset in the future. Keeping records from the start will ensure you don’t pay more tax than necessary.

Your documentation must be in English, unless you incurred the expense outside Australia.

Are you always on the go? Save time and keep your tax organised with the ATO app’s myDeductions tool.

The myDeductions tool makes it easier and more convienient for you to keep your deductions all in one place.

CREDIT: www.ato.gov.au