Tax Time Document Cleanup: What to Keep, What to Shred

Post-Tax Season Document Management

After another tax season, many Perth businesses are left with mountains of financial documents. The question is: what can you safely shred, and what must you keep?

ATO Document Retention Requirements

The Australian Tax Office has clear guidelines on how long you must retain various documents:

5-Year Retention (Minimum)

• Income tax records
• BAS and GST records
• Deduction receipts
• Bank statements
• Investment records

7-Year Retention

• Fringe benefits tax records
• Capital gains records (some cases)
• Superannuation records
• Employment records

Indefinite Retention

• Records of asset purchases (until disposal)
• Any records subject to audit or dispute

Safe Document Destruction Schedule

After the required retention period:

1. Immediate Destruction - Documents beyond retention period 2. Review First - Records that may support ongoing claims 3. Keep Forever - Property purchases, major investments

The Risks of Keeping Too Long

While retention is important, keeping documents indefinitely creates risks:

• Increased storage costs
• Higher breach exposure
• Clutter reduces efficiency
• Discovery obligations in litigation

Organising Your Annual Shredding

Best practice is an annual document review:

January-February

• Review previous financial year documents
• Identify documents past retention period
• Schedule secure destruction

Post Tax Lodgement

• File current year documents
• Destroy superseded documents
• Update retention schedules

Business vs Personal Documents

Requirements differ for business and personal records. Ensure you understand which retention rules apply to each document type.

WEST SHRED provides annual cleanout services perfect for post-tax season document destruction, with full certificates of destruction for your records.