Keep old records

Southern Riverina news - - NEWS -

Dur­ing the fi­nan­cial year you’ll re­ceive doc­u­ments that are im­por­tant for do­ing your tax, such as pay­ment sum­maries, re­ceipts, in­voices and con­tracts.

Gen­er­ally, you need to keep these for five years from when you lodge your tax re­turn in case you’re asked to sub­stan­ti­ate your claims.

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; con­tracts; ten­ant and rental records. If your to­tal claim for work-re­lated ex­penses is $300 or more, you must have writ­ten ev­i­dence to prove your claims.

If you ac­quire a cap­i­tal as­set — such as an in­vest­ment prop­erty, shares or man­aged fund in­vest­ment — start keep­ing records im­me­di­ately be­cause you may have to pay cap­i­tal gains tax if you sell the as­set in the fu­ture. Keep­ing records from the start will en­sure you don’t pay more tax than nec­es­sary.

Your doc­u­men­ta­tion must be in English, un­less you in­curred the ex­pense out­side Aus­tralia.

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