How long do you need to keep business records in Australia?
In Australia, businesses are required to keep financial records for a minimum of five years. This includes records such as tax returns, invoices, receipts, and bank statements. The five-year period begins from the end of the financial year in which the records were created or the tax return was lodged. This timeframe is essential for complying with the Australian Taxation Office (ATO) regulations and for ensuring that any future audits or inquiries can be properly handled. However, some records may need to be kept longer if they relate to assets, such as property or equipment, which are subject to depreciation or capital gains tax. Keeping accurate and complete records is crucial for businesses to stay compliant and avoid penalties.
