How long must I keep tax records?

Generally 5 years from when you lodge your tax return or BAS. Keep payroll and employment records for 7 years (Fair Work). Keep CGT, asset and depreciation records for 5 years after the asset is disposed of or the last claim. Trust and company records are usually 5 years; some corporate records can be longer under the Corporations Act.

Are digital copies acceptable to the ATO?

Yes. The ATO accepts clear, readable digital copies that show all details of the transaction. Ensure documents are backed up, accessible, and unchanged from the original content. Scans/photos via reputable apps are fine if they capture the full document.

What should be in a BAS support pack?

Include your GST detail report, BAS worksheet, bank reconciliation, sales and purchase summaries, PAYGW summary (if withholding), and supporting tax invoices for large or unusual transactions. Keep this pack with your quarter's folder for at least 5 years.

What records do I need for payroll and super?

Maintain STP reports, payslips, timesheets or awards basis, super payment confirmations, TFN declarations, payroll tax calculations (where applicable), and leave balances. Fair Work requires payroll records to be kept for 7 years.

How do I handle logbooks and home office records?

For car claims, keep a 12-week logbook and odometer records and retain fuel/expense evidence; for home office, keep diaries or timesheets and bills supporting your method. Keep these for at least 5 years from the return they support.

Best Way to Organise Tax Records

Q: What is the best way to organise tax records in Australia?

Use a digital-first system: set up folders by entity and financial year, separate by tax type (Income Tax, GST/BAS, PAYGW, Super, FBT, CGT), capture every receipt/invoice with an app, name files consistently (YYYY-MM-DD_Supplier_Amount_Tax), reconcile bank feeds monthly, prepare a BAS pack quarterly and a year-end pack for your tax return. Keep records for at least 5 years (7 years for payroll under Fair Work).

Q: When should I get professional help?

Get help if you are behind on BAS, have mixed personal/business spending, are migrating software, have multiple entities, need STP Phase 2 or super compliance fixed, or are preparing for finance, due diligence or ATO review. A brief clean-up and system setup saves time and penalties.

What “tax records” includes in Australia

Organising tax records means storing clear source documents and reports that support amounts you report to the ATO and other regulators. For small businesses this usually covers:

Income tax: sales invoices, bank statements, loan statements, asset purchase docs, depreciation schedules, stock-takes and adjustments.
GST/BAS: tax invoices, GST detail reports, BAS worksheets, bank recs, and evidence for unusual adjustments. See Best Way to Prepare BAS.
PAYG withholding and payroll: STP reports, payslips, timesheets, award calculations, super payment confirmations, TFN declarations.
Superannuation: payment confirmations, clearing house receipts, choice forms and eligibility evidence.
Fringe Benefits Tax (where relevant): benefit records, employee declarations, logbooks and valuation support.
Capital gains and assets: purchase and sale contracts, settlement statements, improvement costs and depreciation/work papers.
Motor vehicle and home office: logbooks, odometer readings, diaries/timesheets and bills depending on the method used.

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Step-by-step: best way to organise tax records

1) Choose a digital home

Use cloud accounting (Xero, MYOB, QuickBooks) and a shared storage location (e.g. SharePoint, Google Drive, Dropbox). Turn on bank feeds and enable a receipt capture app (Dext, Hubdoc, Xero Files or QuickBooks Receipts).

2) Set your folder map

Entity → Financial Year (e.g. 2025–26) → Tax type (Income Tax, GST-BAS, Payroll-Super, FBT, CGT) → Month/Quarter. Keep a separate “Year-End Pack”.

3) Lock in naming rules

Use: YYYY-MM-DD_Supplier_Amount_Tax. Add descriptors for assets or loans (e.g. “2025-11-03_FordRanger_45200_GST_Asset”). Consistent names make search and audit support fast.

4) Capture every source doc

Snap receipts same-day. Email supplier invoices directly into your app. Download bank/loan statements monthly. Save payroll and super confirmations each pay cycle or month.

5) Reconcile monthly

Clear bank recs, match documents, and separate personal spending. Review GST coding and payroll categories to keep BAS and STP accurate.

6) Build a BAS pack quarterly

Export GST detail, BAS worksheet, bank recs, and summary of large/unusual items with invoices attached. File in “GST-BAS → 2025–26 → Q1/Q2/Q3/Q4”.

7) Compile a year-end pack

Include final bank recs, trial balance, debtor/creditor listings, asset register, stocktake, loan statements, PAYG summaries, and key contracts. Hand this to your tax accountant.

8) Review permissions and backups

Restrict who can edit/delete records. Turn on version history and automatic backups. Document the process so someone else can follow it during leave or growth.

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A simple folder structure that works

Use this as a starting point and tailor to your entity and industry:

Company-Name
- 2025–26
  - Income-Tax
  - GST-BAS
    - Q1
    - Q2
    - Q3
    - Q4
  - Payroll-Super
    - STP-Reports
    - Payslips
    - Super-Confirmations
  - Assets-CGT
  - FBT
  - Year-End-Pack

Mirror this structure inside your accounting software’s files area where possible. Keep sensitive documents in restricted folders.

What to keep and how long

General tax and GST records: keep for at least 5 years from the date of lodgement.
Payroll and employment records: keep for 7 years (Fair Work requirement).
Assets, depreciation and CGT records: keep for 5 years after disposal or the last claim affected by the record.
Trusts and companies: financial records typically 5 years; some corporate records may have longer retention under the Corporations Act.
Keep logbooks, diaries and method evidence for at least 5 years from the return they support.

Digital copies are fine if they are clear, complete and backed up. Keep original documents where legally required (rare for most small business tax records).

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Monthly, quarterly and year-end checklists

Monthly

Capture all receipts/invoices, reconcile bank/credit cards, review GST coding, download loan statements, file payroll/STP and super confirmations.

Quarterly (BAS)

Prepare GST detail and BAS worksheet, run payroll summaries, review unusual adjustments, export bank recs, and save the signed BAS. See BAS agent services.

Year-end

Freeze ledgers, update asset register, stocktake, confirm loan balances, reconcile super and payroll, and compile the year-end pack for your small business accountant.

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Common mistakes to avoid

Mixing personal and business spending in one account.
Not keeping tax invoices for GST credits over the threshold or for unusual items.
No naming convention, which makes audits and due diligence slow and costly.
Only cleaning up records at year-end, which increases BAS and payroll errors.
Ignoring STP Phase 2/payroll category mapping, causing ATO mismatches.

If any of these apply, a short clean-up plus a clear monthly rhythm usually fixes the problem quickly. Compare bookkeeping services and tax accountants to see the best fit.

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Tools that make recordkeeping easier

For most small businesses, the simplest stack is cloud accounting plus receipt capture:

Accounting: Xero, MYOB, or QuickBooks (choose based on features and advisor support). See best accounting software for small business.
Receipt capture: Dext, Hubdoc, Xero Files or QuickBooks Receipts to automate document storage and data entry.
Payroll: STP-enabled payroll with super clearing house integration. See payroll services.
Secure cloud storage: Drive, SharePoint, or Dropbox with versioning and permissions.

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Frequently asked questions

What is the best way to organise tax records in Australia?

Use a digital-first system with a clear folder map by year and tax type, capture every receipt or invoice, follow a monthly reconciliation routine, build a quarterly BAS pack, and compile a year-end pack. Keep ATO records for 5 years and payroll records for 7 years.

What records must I keep for tax?

Keep sales invoices, purchase invoices/tax invoices, bank and loan statements, payroll/STP reports, super payment confirmations, asset and CGT documents, and any evidence supporting adjustments, logbooks or home office claims.

How long should I keep business records?

Generally 5 years from lodgement for ATO purposes, 7 years for payroll under Fair Work, and 5 years after disposal or last claim for assets/CGT records.

Are scans and photos acceptable?

Yes, as long as the image is clear, complete and stored securely with backups. Keep the digital copy accessible and unaltered.

How do I prepare records for BAS?

Reconcile monthly, then quarterly export GST detail, BAS worksheet, bank recs and attach invoices for large/unusual items. File together as your BAS pack and retain for at least 5 years.

When should I get professional help?

Get help if you are behind on BAS, have data mismatches in STP, are changing software, running multiple entities, or need a clean-up before finance, due diligence or an ATO review.

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Best next steps

Decide your monthly routine, set your folder and naming rules, and do a one-time clean-up so your next BAS and year-end are straightforward. If you want a done-for-you setup with clear checklists and handover, use the form below.

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