Overview
You need to keep records for your daily business transactions, including income, expense and employee records. Your records must:
- explain all transactions
- be in writing
- be in English
- be kept for 5 years (although some records need to be kept longer).
- Managing your invoices, payments and records
- Record keeping evaluation tool
- Bartering and barter exchanges
Primary producers have the same record keeping obligations as businesses. However, there are some special considerations for primary producers.
Commercial fishing industry joint ventures
Some owners and skippers engaged in commercial fishing are eligible to form a joint venture for GST purposes. It is unlikely that crew members will meet the requirement for joint venture membership. You are required to obtain approval from us to operate a GST joint venture.
Only the GST joint venture operator pays GST and claims any credits. To ensure activity statements are accurate, other members of the venture must keep accurate records of their income and expenses for the operator to use.
Joint ventures are complex business arrangements and we recommend you seek professional advice when deciding if you should be part of a joint venture.
Farm management deposits scheme
If you are using a Farm management deposits scheme you will need to keep records showing the:
- amounts and dates the deposits and withdrawals were made
- amounts of tax deductions previously claimed.
Fuel tax credits
To support fuel tax credit claims, you must keep records showing the:
- type and quantity of fuel you acquired
- date you acquired the fuel
- business activities you use the fuel for (for example, travelling on a public road or in other activities)
- calculations of your fuel tax credits.
See Working out your fuel tax credits for more information.
You must have records that show the activities of your business that support your actual claim.
Records that show your business activities include:
- business expenses that relate to eligible activities
- sales and production records
- lease documents for agricultural land or equipment
- share-farming contracts
- vehicle and equipment use and maintenance records.
Records that support your claims for fuel tax credits include:
- tax invoices for fuel you have acquired, including when it was acquired and the quantity
- bank statements
- records of how you used the fuel and any that was lost, stolen or otherwise disposed of
- records showing how you have worked out your fuel tax credits.
For heavy diesel vehicles manufactured before 1 January 1996 and used for travelling on a public road, your records must show you meet one of the environmental criteria to be eligible for fuel tax credits.
If you use farm vehicles mainly on an agricultural property to carry on a primary production business, you do not have to meet the criteria.
Fuel tax credits you received for your business activities are assessable income and need to be included in your tax return.
Trading stock
You can choose to value trading stock at cost, market-selling value or replacement value. It is important to maintain up to date records showing how you value your stock. This is so you can report any profits or losses correctly, because there are many concessions available to primary producers. These include:
- wool growers that defer profits on the sale of a wool clip from an advanced shearing caused by drought, fire or flood
- insurance recoveries for loss of livestock may be included in assessable income in equal instalments over 5 years
- profit from forced disposal or death of livestock may be spread over 5 years (10 years if the forced disposal was for the control of bovine tuberculosis).
Stock killed for rations or exchanged for goods and services will be treated as if you disposed of the stock at cost and will be treated as assessable income.
For more information, see:
- the prescribed costs assigned to the natural increase of certain animals
- Oyster farmers for how to account for oysters as trading stock
Wine equalisation tax
You need to keep records of your sales, own use, and import and export transactions so you can:
- accurately report your wine equalisation tax (WET) payable
- substantiate any credits you claim.
If you're claiming the producer rebate you need to keep records showing that you produced the wine and meet the ownership of source product, packaging, and branding requirements that apply.
You need to keep these records for 5 years.
For more information, see Record keeping for business.