Records You Need to Keep: What, How Long, and In What Format?

By NBK Services Pty Ltd

Following on from last week’s deep dive into “What is a record?” and “The importance of keeping records”, we explored the key benefits of aligning your record keeping with the ATO’s guidelines, the consequences of falling short, and how NBK Services can help you and your accountant navigate the complex “grey areas” with clarity and confidence.

This week, we’re taking a practical look at what specific records you need to keep, how long you must keep them, and in what format. Because good record keeping isn’t just about staying compliant – it’s about giving yourself the tools to make informed decisions, reduce stress, and streamline your tax time.

Here is a link to and ATO Evaluation Tool Record keeping evaluation tool.

What Records Must You Keep?

The ATO requires that you keep written evidence for five years from the date you lodge your tax return. This includes, but is not limited to:

Receipts and invoices for purchases and sales

Bank statements

PAYG summaries

Contracts and agreements

Motor vehicle and travel logs

Expense claims

Asset purchase and disposal records

Special Situations with Different Time Frames

Records for 5 Years:

Most Business Records: Generally, the 5-year period starts from when you prepared or obtained the record or completed transactions.

Fringe Benefits Tax (FBT): the 5-year period begins on the date you lodge your FBT return

Superannuation records for employees: the 5 years starts from the date of the contribution

Employee choice of super fund records: the 5 years starts from the date or the employee engagement or when they choose or change their fund

Capital Gains Tax (CGT) records: You must keep these records for at least five years after the CGT event.

Records for 7 Years:

Employment records, including PAYG withholding and wages: these must be kept for seven years

Company records: As a company, you are required to keep your business records for seven years

Transaction records for ADIs: Authorised deposit-taking institutions (AIDs) transferring accounts must keep transactions records for seven years.

Longer Periods:

Disputes with the ATO: If you are in a dispute, you must keep relevant records until the matter is resolved, even if it exceeds the standard retention period.

Information use in future returns: If you us information from a record in one financial year, and again in a later return, you must keep the record until the period of review for the later return has ended.

What Format Should Your Records Be In?

Interesting Facts:

The ATO recommends 2 copies to be kept

You can have 2 different electronic locations

Or one scanned version and one physical – and it should always be backed up.

You also need to maintain a read only version of any accounting file when changing software as well as back up files etc.

Banks now need to keep records so you can get statements online for up to 7 years to allow for this as well.

Records can be kept in either paper or electronic format

the ATO accepts both, provided they are:

Clear, true, and unaltered copies of the original documents

In English, if the expense is incurred in Australia

Accompanied by a certified translation, if the record is in a foreign language (when the expense occurred overseas)

Electronic Records – What You Need to Know:

You can use:

Mobile apps

Cloud software

Scanned documents

Photos of receipts

But be smart – back up your records regularly and ensure your digital files are easy to locate and understand. Poor record-keeping isn’t just risky; it can cost you valuable time and money.

How NBK Services Can Help

At NBK Services Pty Ltd, we don’t just help you tick boxes – we help you build a record-keeping system that works for you. Whether you’re a sole trader, small business, or looking to streamline your processes ahead of tax time, we:

Work with you to identify what records are relevant to your situation

Liaise directly with your accountant to ensure consistency

Guide you through grey areas with practical, ATO-aligned advice

Help you implement tools and digital solutions that make record-keeping easier and more reliable

Don’t Leave It to Chance

Records aren’t just for the ATO – they’re for you. With accurate, accessible records, you can:

Maximise your deductions

Avoid penalties and interest

Make faster, smarter business decisions

Sleep easier at night, knowing you’re covered

Stay tuned next week as we look at, Record Keeping Exceptions and Record keeping Relief

In the meantime, if you’re unsure about how long to keep a particular record, or whether your current system meets ATO expectations, get in touch with NBK Services Pty Ltd – we’re here to help you make confident, compliant choices.

Want to learn more or book a consultation? Visit our website Home – NBK Services Pty Ltd or contact us directly – we’d love to support your success.