How long am I required to keep my tax records for Australian business

Documentation is at heart of accounting. However question arises as to the time period for which the tax records needs to be maintained.

How long to keep bookkeeping documents :

There is a requirement that you need to keep your tax records for five years from the date you file your tax returns.

However there are certain cases in which you are required to keep the tax records for enhanced time period. For example in case you are availing depreciation on assets, you need to keep records for more than 5 years. You need to keep proof of purchase of asset for period more than 5 years.

Medium of Storage: You can keep the records in electronic form as well. However the same should be easily accessible and should be in English Language.

You need to have a good record keeping system in place in order to avoid any trouble in future. Absence of record keeping can lead to heavy penalties as dis-allowance of tax deductions.