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Record keeping

Last updated 26 August 2007

You must keep the following information for a depreciating asset:

  • the first and second elements of cost
  • the opening adjustable value for the income year
  • any adjustments made to cost or adjustable value
  • the date you started holding the asset and its start time
  • the rate or effective life used to work out the decline in value
  • the method used to work out the decline in value
  • the amount of your deduction for the decline in value and any reduction for use of the asset other than for a taxable purpose
  • the adjustable value at the end of the income year
  • any recoupment of cost you have included in assessable income, and
  • if a balancing adjustment event occurs in relation to the asset during the year, the date of the balancing adjustment event, termination value, adjustable value at that time, the balancing adjustment amount, any reduction of the balancing adjustment amount and details of any rollover or balancing adjustment relief.

You must also keep:

  • details of how you worked out the effective life of a depreciating asset where you have not adopted the effective life determined by the Commissioner
  • if you have recalculated the effective life of an asset, the date of the recalculation, the recalculated effective life, the reason for the recalculation and details of how you worked out the recalculated effective life, and
  • original documents such as suppliers' invoices and receipts for expenditure on the depreciating asset.

Additional record keeping requirements apply if you acquire an asset from an associate or if you acquire a depreciating asset but the user is the same or is an associate of the former user - see Depreciating asset acquired from an associate and Sale and leaseback arrangements.

Failure to keep proper records will attract penalties.