Record keeping and retention

Why keep records?

By law, you and your clients must keep business records:

• generally for five years after they are prepared, obtained or the transaction is completed, whichever occurs latest
• in English or in a form that we can access and understand in order to work out the tax your clients are liable to pay.

Some records may need to be kept for longer periods, such as records relating to capital gains tax events. However, shorter record keeping periods apply for some records for individual clients with simple tax affairs.

You can issue and store records in either paper or electronic format.

For more information about: what types of records you must keep in relation to income tax and other taxes, refer to taxation ruling TR 96/7: Income tax: record keeping - section 262A - general principles electronic records, refer to taxation ruling TR 2005/9: Income tax: record keeping - electronic records. For more record keeping information for your: small business clients, refer to Record keeping essentials individual clients, refer to Keeping your tax records.