What Evidence Do You Need for Your Tax Return in Australia?

Filing a tax return requires accurate documentation to support your income, deductions, and tax offsets. Having the right evidence ensures compliance with Australian Taxation Office (ATO) regulations and maximises your deductions. Below is a guide to the essential documents and records you need.

1. Income Documentation

To report your income accurately, you must provide evidence for all income sources, including:

  • PAYG Payment Summary (Group Certificate): Issued by your employer, detailing salary and tax withheld.
  • Bank Statements: Showing interest earned from savings accounts.
  • Rental Income Statements: Records from property managers or personal documentation of rental earnings.
  • Investment Income: Dividend statements, managed fund distributions, and capital gains from selling assets.
  • Government Payments: Statements for Centrelink or other benefits received.
  • Business or Self-Employment Income: Invoices, sales records, and financial statements for sole traders or business owners.
  • Foreign Income: Documentation of overseas earnings if applicable.

2. Work-Related Expense Deductions

To claim work-related expenses, you must retain receipts and records for eligible deductions, including:

  • Uniforms and Protective Clothing: Receipts for purchase and maintenance.
  • Work-Related Travel: Logbooks, fuel receipts, and transport costs.
  • Home Office Expenses: Internet, electricity, phone bills, and office equipment receipts.
  • Education and Training: Course fees, textbooks, and study-related expenses directly linked to your job.
  • Union Fees and Professional Memberships: Receipts for professional association fees.

3. Investment and Asset Documentation

  • Capital Gains Tax (CGT) Records: Purchase and sale documents for property, shares, and other investments.
  • Dividend Statements: Proof of earnings from Australian company shares.
  • Investment Property Expenses: Mortgage interest, council rates, insurance, and depreciation reports.

4. Superannuation Contributions

  • Salary Sacrificed Contributions: Employer records of additional super contributions.
  • Personal Super Contributions: Receipts of voluntary after-tax contributions for potential deductions.

5. Charitable Donations

  • Donation Receipts: Proof of contributions over $2 made to registered charities.

6. Medical and Private Health Insurance Records

  • Private Health Insurance Statement: Documentation of premiums paid and rebate eligibility.
  • Medical Expense Receipts: For claims under applicable tax offsets.

7. Business-Related Records (If Applicable)

  • Invoices and Receipts: Proof of business purchases and expenses.
  • BAS and GST Records: If registered for Goods and Services Tax (GST).
  • Employee Payroll Records: PAYG withholding details if you employ staff.

8. Other Deductible Expenses

  • Income Protection Insurance Premiums: Receipts showing policy payments.
  • Loan and Interest Records: Documentation of deductible interest expenses.
  • Tax Agent Fees: Receipts for tax preparation services, which are tax-deductible.

9. Keeping Your Records

The ATO requires that you keep records for at least five years from the date of your tax return. Digital copies of receipts, statements, and logs can help ensure compliance and reduce the risk of lost documentation.

10. Seeking Professional Advice

A registered tax agent or accountant can help ensure you have the correct documentation and maximise your tax return. Keeping well-organised records simplifies the filing process and helps avoid audits or penalties from the ATO.

By maintaining these records, you can confidently complete your tax return and optimise your financial position within legal guidelines.

The Team at The Accountants and The Finance Brokers are here to help you navigate your cash flow requirements in your business. We offer complimentary cash flow reviews and assist you in understanding your finance needs.