Records to keep
You do not need to send your receipts to the ATO when you lodge — but you do need to keep them. If the ATO reviews your return, your records are your proof. Without them, deductions can be disallowed and your assessment can be changed.
The five-year rule
Keep your written evidence for five years from the date you lodge your return. For capital gains tax assets, keep records for five years after the CGT event — in practice, keep property purchase records while you own the asset, plus five years after you sell it. The ATO can amend an assessment for up to four years after lodgment, so the five-year rule gives you a margin.
What to keep
| Category | Examples |
|---|---|
| Income | Income statements, bank interest summaries, dividend statements, rental records |
| Deductions | Receipts, invoices, logbooks, diaries, work-related travel records |
| Super and donations | Contribution receipts, notices of intent to claim, donation receipts |
| Property and shares | Purchase and sale contracts, settlement statements, CGT records |
| ATO correspondence | Notices of assessment, payment summaries, letters from the ATO |
How to keep records
Records must be in English or readily convertible to English, and electronic copies are acceptable if they are clear and complete — a photo of a receipt counts, as long as every line is legible. Store them where you can find them: a folder per income year, on paper or in the cloud, works for most people. A simple habit that works is to photograph every receipt the day you get it and file it in that year's folder.
What happens if your records are poor
Failing to keep records, or refusing the ATO access to them, can attract an administrative penalty of up to 20 penalty units — $6,600 at the current $330 unit value. More commonly, the practical cost is losing deductions you were entitled to because you cannot prove them. Good records are also the fastest way to lodge an accurate return: most of what myTax asks for is already in your files.
Sources: Australian Taxation Office (ato.gov.au) — Records you need to keep; Record-keeping rules; Penalties for poor record keeping.