How Long Do You Have To Keep Business Tax Records?

The end of the financial year is nigh, and you’re gathering together documents to prepare for 2013/2014 tax filing. But how long will you have to hang onto them?

Filing cabinet picture from Shutterstock

You’ll hear lots of different figures quoted, but as the Australian Taxation Office makes clear, five years is the minimum period:

By law, you must keep business records for five years after they are prepared, obtained or the transactions completed, whichever occurs latest.

The “transactions completed” clause is important; if you’re relying on those records in other contexts, then the length you need them will be extended. Any records you use for tax purposes would need to be kept for at least five years after your notice of assessment is issued, and potentially for longer if you are claiming losses over a number of years.

In most circumstances, keeping business records for the life of the business and beyond makes sense — and if you keep them in electronic form, they won’t take up valuable real estate. (Electronic records have the same legal validity as paper ones.)

Reminder: For specific tax advice relating to your individual situation, consult a registered professional.


The Cheapest NBN 50 Plans

Here are the cheapest plans available for Australia’s most popular NBN speed tier.

At Lifehacker, we independently select and write about stuff we love and think you'll like too. We have affiliate and advertising partnerships, which means we may collect a share of sales or other compensation from the links on this page. BTW – prices are accurate and items in stock at the time of posting.

Comments


3 responses to “How Long Do You Have To Keep Business Tax Records?”