You need to keep calculations of PAYG instalment amounts as well as payment receipts or bank statements for payments of your business activity statement (BAS) or instalment notice.
You need to keep the following information and records to support the PAYG withholding amounts you include in the PAYG tax withheld section of your BAS.
Information your records need to show
Examples of types of records
The amounts you withheld from payments to employees and directors:
Tax file number declarations or employee tax details summaries
Withholding declarations, including withholding variation notices, you obtain from employees
Worker payment records
Copies of contracts you have with contractors
Records of wages, allowances and other payments made to workers
Copies of payments and reports provided to us, including annual reports of amounts you have withheld
Calculations of PAYG amounts
Payment receipts – for payment of BAS
Single Touch Payroll reports
Records of payments made to all payees
Payment summaries or income statements
The amounts you withheld from interest, dividend and royalty payments to foreign residents
A receipt, remittance advice or similar document containing the following information:
From 1 July 2019, Single Touch Payroll (STP) is compulsory for all employers. It requires you to send your employees' salary and wages, tax withheld and super information to us, using payroll or accounting software that offers STP reporting or another STP-enabled solution, each time you run your payroll and pay your employees. The information is sent to us either directly from the software or through a third party, such as a sending service provider. You could also ask your registered agent to lodge on your behalf.
You need to keep these records for 5 years starting from when you prepared or obtained the records, or completed the transactions or acts those records relate to, whichever is later.
You should keep records long enough to cover the period of review (also known as the amendment period) for an assessment that uses information from the record. When your assessment is amended, the period of review for that amended assessment starts from the day after we give you the notice of amended assessment.You need to keep records of your pay as you go (PAYG) instalment and PAYG withholding transactions.