Tax records for individuals: what to keep and for how long

How long to keep records

5 years from the date you lodge your return (general rule)

$300 and $150 no-receipt limits

Removed from 1 July 2026 (2026–27 onwards)

Standard deduction

Up to $1,000, no records needed (2026–27 onwards)

Photos of receipts

Accepted if a true and clear copy

How long to keep your tax records

The ATO's general rule is that individuals keep their written evidence for 5 years from the date the tax return is lodged, not from the end of the financial year. A 2025–26 return lodged in October 2026, for example, generally means keeping its records until October 2031.

Some records have to be kept for longer, because the 5 years runs from a later event. The ATO sets out these situations:

In practice, records for long-held assets such as an investment property or a share portfolio may need to be kept for many years: from purchase, through ownership, to 5 years after the sale.

The 5-year clock starts on the date you lodge your tax return, so lodging a return late also pushes back the date its records can be discarded.

What counts as a record

A record is anything that shows the income you earned or the money you spent. The ATO accepts paper or electronic records, including receipts and invoices, logbooks for car use, timesheets, spreadsheets, diary or calendar entries, and in some cases an employment contract, duty statement or letter from an employer.

For a work-related expense, the ATO expects written evidence from the supplier, such as a receipt or invoice, that shows:

• the name of the supplier
• the cost of the item or service
• what was bought (the nature of the expense)
• the date it was bought or paid for
• the date the document was prepared

A receipt alone does not show why something is deductible. The ATO also expects a record of how the claim was worked out and how the expense relates to earning income, such as a note explaining the split between work and private use. Only the work-related portion can be claimed.

A bank or credit card statement on its own is generally not enough, because it does not come from the supplier and usually lacks the detail above. It can support other evidence, but it rarely replaces a receipt.

What changed from 1 July 2026

The biggest change for employees is the new standard deduction of up to $1,000 for work-related expenses, which the ATO applies from the 2026–27 income year. Eligible residents who earn labour income such as wages receive it automatically, without having spent the money and without keeping records. The Treasurer announced on 25 June 2026 that the bill containing this "instant tax deduction" had passed Parliament. Our standard deduction guide explains who qualifies.

Because of the standard deduction, the ATO says three record-keeping exceptions no longer apply from 1 July 2026, for all taxpayers whether or not they are eligible for the standard deduction:

• the $300 limit, which let people claim total work-related expenses of $300 or less without full written evidence, provided they could show the money was spent and how the claim was worked out
• the $150 laundry limit, which let people claim laundry of $150 or less without full written evidence such as a receipt
• the award transport exemption

These exceptions still apply to 2025–26 and earlier returns. For 2026–27 and later years, anyone who claims work-related expenses instead of taking the full standard deduction needs written evidence, such as a receipt, for all the work-related expenses claimed. Claimed work expenses reduce the standard deduction dollar for dollar.

The ATO says it will still accept $1 per load (work clothes only) or 50 cents per load (mixed with other clothes) when working out a laundry claim, under the compliance approach in its draft Law Companion Ruling LCR 2026/D5.

Records are still needed for claims that sit outside the standard deduction, including union fees, professional association memberships, income protection premiums, donations, investment and rental expenses, and the cost of managing tax affairs such as a tax agent's fee.

Expecting work expenses close to or above $1,000 in 2026–27? Keeping receipts from 1 July 2026 keeps the option open to claim them in full.

Records for income

Income needs records too, because the ATO can ask for them if it reviews a return. For salary, wages, allowances and government payments, the ATO lists these typical records:

• an income statement, where the employer reports through Single Touch Payroll
• a PAYG payment summary, or a signed letter from the payer with the same details
• a PAYG payment summary for a superannuation income stream
• interest, dividend and managed fund distribution statements, including any annual tax statement showing capital gains, foreign income and franking credits

Keeping the original statements makes it easy to check the amounts that appear in a return. Our tax return checklist lists what to gather each year.

Records for property, shares and other investments

Investment records matter most when an asset is sold, because they set the cost base used to work out a capital gain or loss. Missing purchase records can mean paying more tax than necessary.

Rental properties

For a rental property, the ATO expects records covering the whole period of ownership:

• when buying: the purchase contract, conveyancing documents, loan documents and borrowing costs
• while owning: agent statements, rent records, loan and refinancing documents, receipts for rates, repairs and other expenses, depreciation details, leases, any periods of private use, and before and after photos of capital improvements
• when selling: the sale contract, conveyancing documents, selling costs and the capital gain or loss calculation

Shares and managed funds

Records for shares and units generally include the purchase date and price, brokerage on buying and selling, the sale price, and details of events such as share splits, returns of capital, takeovers and demergers. Each parcel bought at a different time is a separate CGT asset, so records need to show which parcel was sold. CHESS holding statements or issuer-sponsored statements help with this.

Format, photos and the myDeductions tool

Records can be kept on paper or electronically. The ATO accepts photos and scans as long as they are a true and clear copy of the original, and it recommends backing up electronic records regularly.

Records for expenses incurred in Australia must be in English. Records for expenses incurred overseas can be in that country's language, but the ATO may ask for a certified translation if it reviews the claim.

The ATO's myDeductions tool, inside the ATO app, lets individuals photograph receipts and log expenses through the year. According to the ATO, it can record work-related expenses including car trips, interest and dividend deductions, donations, the cost of managing tax affairs and simple sole trader income and expenses. The records can be uploaded to pre-fill myTax, or emailed to a registered tax agent.

Clients of Ross Accounting can also photograph receipts and send them to us through the MyAccountants app.

Small expenses, lost records and relief

The ATO's records page also describes narrower arrangements that are not among the three exceptions removed from 1 July 2026:

• Small expenses: for items of $10 or less where no receipt can be obtained, a diary or phone note made soon after the purchase can be used, up to a total of $200 for the income year.
• Hard-to-get receipts: where a receipt is genuinely hard to obtain, a similar note recording the supplier, amount, what was bought, the purchase date and the date of the note can be used instead. These are outside the $200 small expense limit.
• Lost or destroyed records: if records are lost through theft, a disaster or circumstances such as family violence or sudden homelessness, the ATO may grant relief where there is enough other evidence that the expense was incurred and reasonable steps were taken to get substitute records.

Relief is limited. The ATO says it will not grant it simply because someone did not know how the rules work, and a cash payment with no supporting document is generally not enough to claim a deduction. If claims cannot be supported in a review, the ATO can disallow them and penalties may apply.

For help working out which records apply to a particular situation, our individual tax returns team can talk it through before a return is lodged. Contact us to book a time.

Frequently asked questions

General information only, not personal advice. Tax rules change and your circumstances matter, so talk to us before acting. See our disclaimer.