Records connected to an assessment that's amended
You should keep records long enough to cover the period of review (also known as the amendment period) for an assessment that uses information from the record.
The period of review is the time period within which the assessment can be amended by you or by us.
For example, the period of review for:
- an income tax return is generally 2 years for individuals and small businesses and 4 years for other taxpayers, from the day after we give you the notice of assessment
- a business activity statement (BAS) is generally 4 years from the day after the notice of assessment is given
- a fringe benefits tax return is generally 3 years from your date of lodgment.
You need to keep your records long enough to cover the 5-year retention period and the period of review for the relevant assessment. In many cases, the 5-year retention period will also cover the period of review.
When your assessment is amended, the period of review for that amended assessment restarts from the day after we give you the notice of amended assessment.
Records of information used again in a future return
If you use information from a record in your tax return in one financial year and then use that information again in a future return, you need to keep that record until the period of review for the later tax return has ended.
Examples include:
- If you have to spread your borrowing expenses over 5 years, you would need to keep those records for long enough to cover the period of review for the tax return from the last year in which you claimed those expenses.
- If you work out that you made a business loss in 2012–13 and you carry that loss forward and deduct it in your business's 2018–19 tax return, you need to keep the records you used to work out the loss until, at least, the 2018–19 tax return's period of review has ended.
You can find out more about time limits on tax return amendments and read our TD 2007/2Opens in a new window Income tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?
Records of depreciating assets
For depreciating assets, you generally need to keep the record for as long as you have the asset for, and then another 5 years after you sell, or otherwise dispose of, the asset. However, there are different time periods and requirements that apply if the depreciating asset is in a low-value pool or is subject to rollover relief.
Records of capital gains tax assets
For capital gains tax (CGT) assets, you generally need to keep the record for as long as you have the asset, and then another 5 years after you sell, or otherwise dispose of, the asset.
Petroleum resource rent tax records
Petroleum resource rent tax (PRRT) records need to be kept for 7 years or more.