Records You Must Keep for More Than Five Years

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As a business owner in Australia, maintaining accurate and compliant records is essential for tax and legal purposes. While most business records must be kept for at least five years, certain records require longer retention periods. Understanding these requirements can help you stay compliant with the Australian Taxation Office (ATO) and avoid penalties.

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What Records Should Be Kept Longer Than Five Years?

1. Capital Gains Tax (CGT) Records

If your business sells or disposes of an asset, you must keep records of the purchase, improvements, and sale for at least five years after the CGT event occurs. However, if the CGT event results in a capital loss, records must be kept for five years after the loss is claimed in a tax return.

2. Superannuation Contribution Records

If your business makes superannuation contributions for employees or yourself as a sole trader or partner, keep these records for at least five years after the contribution was made. However, if these records impact a retirement account or self-managed super fund (SMSF), they may need to be kept longer.

3. Business Structure and Ownership Documents

Documents related to company formation, partnership agreements, and trust deeds should be kept indefinitely, as they are essential for audits, legal matters, and compliance requirements.

4. Employee and Payroll Records

Employment records, including wages, PAYG withholding, and superannuation details, should be retained for a minimum of five years. However, in some cases, the Fair Work Ombudsman or other regulatory bodies may require longer retention.

5. Legal and Contractual Documents

Agreements such as leases, contracts, and legal disputes should be retained beyond the standard five-year period, especially if they impact ongoing business operations or financial reporting.

6. Depreciation and Asset Records

If your business claims depreciation on assets, records should be kept for five years after the last depreciation claim to verify calculations and ensure compliance with tax laws.

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Why Keeping Records Longer Matters

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Maintaining records for longer than five years can help businesses:
✔️ Meet audit and compliance requirements
✔️ Support claims and deductions in case of disputes
✔️ Protect against legal issues and contractual disputes
✔️ Ensure accurate reporting for capital gains tax and asset management

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For more details on business record-keeping requirements, visit the ATO’s official website.

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📌 Contact Us Today:

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👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
📍 159 Stoney Creek Road Beverly Hills NSW 2209
☎ 02 9543 6804
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!

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Our team of expert accountants is here to simplify your record-keeping and tax obligations so you can focus on growing your business. Book your consultation today!

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