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 the ATO. For example, the period of review for:

• an income tax return is generally two years for individuals and small businesses and four years for other taxpayers, from the day after we give you the notice of assessment
• a business activity statement (BAS) is generally four years from the day after the notice of assessment is given
• a fringe benefits tax return is generally three years from your date of lodgement.

You need to keep your records long enough to cover the five-year retention period and the period of review for the relevant assessment. In many cases, the five 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 you receive the notice of amended assessment.

 

This information is provided by Australian Bookkeepers Network Pty Ltd
www.austbook.net