How Long Do I Need to Keep My Receipts for Tax Deductions?

You need to keep records that support the claims you make in your tax return, but for how long?

How Long Do I Need to Keep My Receipts for Tax Deductions?

You know tax time is here when you get a call from one of our team or the ATO reminding you to pull all your receipts together. More often than not, you’ll have a pile of paperwork, some of it relevant, some of it not. It can be tempting to throw in the towel and with it, any potential deductions. If this scenario sounds familiar, you are not the only one.

Having organised tax records can help you get better tax returns. Refunds aside, the ATO is cracking down on improper deductions so if you plan to claim it, you need to be able to prove it in an ATO audit scenario. And most importantly, how long do I need to keep these records?

Keeping track of it all

When it comes to keeping track of it all for your tax return, there’s a general thought that it all comes down to parking and petrol receipts. In fact, there’s a lot more you need to keep in your files for tax time.

Start with all the income you’ve received – salary, interests, dividends and any rental income earned from an investment property. In addition to income, you’ll also need to keep track of your expenses. This includes anything you purchased to help you earn that income. This could be an occupation-specific uniform or a repair made for an investment property. If you bought or sold an asset such as a home, shares or a car – keep a copy and file the paperwork for these too.

As a rule of thumb, if you’re unsure whether you need to keep it or if you can claim it, hold onto it and let one of our team make that call. Assumptions can cost you, and the rules from the ATO are ever changing.

Don’t forget the ATO requires you to keep receipts for a minimum of five years and longer for some other types of documents.

Go digital

If you paid using a bank or credit card and the transaction is listed on your statement, then according to the ATO, that is likely to be sufficient proof. Whether that’s your mobile phone, parking or deductible subscriptions, it is best to go through your statements and keep a record of your expenses.

If you haven’t already lodged your return, make an appointment with one of our tax professionals today and we can assist you to get your lodgments up to date.

Any concerns?

If you have any concerns about the impact of the proposed changes please contact us here.

Note: The information contained in this update has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. 

You should seek advice before making any decision regarding any information, strategies or products mentioned to consider whether that is appropriate to your own objectives, financial situation and needs.