What Records Should Businesses Keep for Tax and BAS Purposes

Business records should explain the transactions reported in the accounting file and support the amounts lodged with the ATO. Most business and GST records generally need to be kept for at least five years, while employment records under Fair Work rules generally need to be kept for seven years. Some records need to be retained for longer.

Income and expense records

Keep sales invoices, receipts, contracts, bank statements, merchant reports, supplier invoices, purchase receipts, and documents supporting adjustments or refunds. The records should show the date, supplier or customer, amount, GST treatment, and business purpose where it is not obvious.

Payroll and super records

Keep employee details, tax file number declarations, super choices, timesheets, pay calculations, leave records, pay slips, termination details, STP reports, and super payment information. Pay slips must be provided within one working day of payday, and employee records must be accurate and accessible.

Assets, loans, and special transactions

Keep purchase and sale documents for assets, finance agreements, lease documents, loan statements, motor vehicle records, stock records, grants, insurance claims, and evidence supporting private-use adjustments. Asset and ownership records may need to be kept beyond the normal period because they can affect later tax calculations.

What to do next

Store records digitally in a consistent folder or document system.
Make sure documents remain readable and can be linked to the accounting transaction.
Check the ATO and Fair Work requirements when a record relates to assets, employees, disputes, or long-term arrangements.

Final Thoughts

Good record keeping is not about keeping every piece of paper forever. It is about retaining the right evidence, for the right period, in a form that can be found when it is needed.

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Chisel Consulting provides structured bookkeeping, BAS, payroll, reporting, and file-review support for businesses across Australia.