Keeping Rental Property Records

The ATO advises individuals to maintain comprehensive records of both income and expenses related to their rental property.

 

Remember to do these when keeping records

The records for rental expenses should be in English or easily translatable, containing details such as the supplier’s name, expense amount, description of goods or services, date of expense, and document date. If a document lacks the payment date, alternative evidence like a bank statement should be used to establish the expense date.

 

For how long?

It’s recommended to retain rental income and expense records for a period of 5 years from October 31 or, if filing taxes later, from the tax return lodgment date. If any disputes with tax authorities arise within this timeframe, the relevant records should be retained until the resolution of the dispute.

These records need not be submitted with the tax return but should be kept on hand in case of an audit.

Examples of records to maintain include loan documents, receipts for various expenses, land tax assessments, credit card records, tenant leases, bank statements, and rent records from property management agents.

 

All information was sourced from ato.gov.au