One thing to keep in mind is your work related expenses. If your work related expenses total $300 or more, you must have written evidence to prove your claims. When you are claiming Tax, one of the most important things you need think about is keeping records for everything that you are claiming.
Keeping Records – What to keep
Here are some things that are good for you to be keeping records of:
- Payment summaries
In general, you need to keep these records for at least five years from the date you lodge your tax return. The reason why you need to hold onto these records is because you may need to prove and substantiate your claims to the ATO during that period.
Records you need to keep include:
- Payment summaries from payers, including your employer and the Department of Human Services
- Statements from your bank and other financial institution showing the interest you’ve earned
- Dividend statements from companies
- Summaries from managed investment funds
- Receipts or invoices for equipment or asset purchases and sales
- Receipts or invoices for expense claims and repairs
- Tenant and rental records.
You need to make sure that you that all the documentation that you keep in Australia is in English. The only foreign language documentation permitted are document you receive when an expense has been incurred outside of Australia.
If you acquire a capital asset (like an investment property, shares, or manage fund investment) the best thing to do is to immediately start keeping records. If you sell the asset in the future, you may have to pay Capital Gains Tax. Maintaining your records on these help prevent you from paying more taxes than is necessary.
What you need to remember
You need to keep these records for at least five years to substantiate your claims.
Pauline Campbell – Senior Accountant
A valued member of Fitzpatrick Group since 2000, Pauline has a Bachelor of Business, majoring in Accounting . She specialises in business and company tax returns, and excels at preparing and lodging BAS statements for her clients.