ato how long to keep business records

Short answer: keep business records for 5 years—because the ATO has a memory like an elephant with a spreadsheet. The rule of thumb is 5 years from when you prepared or obtained the record, or when the transaction was completed, whichever is later; for returns, it’s 5 years from lodgement. Capital gains? Keep asset records for 5 years after you dispose of the asset. Depreciating assets need records for 5 years after your last claim. Employers: payroll/PAYG withholding, super contributions, and FBT records are also 5 years (FBT counted from the return’s lodgement). Electronic copies are fine if they’re accurate and readable in English, so scanning that shoebox is not just allowed—it’s encouraged.