Accurate reporting of investment income and claiming tax deductions is crucial for financial management. Understanding the records to keep and the duration for which they should be maintained is key to a seamless tax filing process.

In general, it is advisable to retain investment-related records for at least 5 years after the Australian Taxation Office (ATO) has processed your return. The records you should keep include details on:

• Purchase costs
• Disposal amounts
• Income received
• Expenses incurred in ownership and maintenance

To maintain a comprehensive record, consider retaining:

• Acquisition and disposal statements (buy and sell contracts) for 5 years from the shares’ disposal date
• Bank statements and passbooks
• Dividend or managed investment distribution statements
• Purchase and sale details, including contracts
• Expenditure records
• Details of capital losses from previous years for potential offset against future capital gains

Most of the necessary records can be obtained from:

• The company issuing the shares
• Stockbroker or online share trading provider
• Financial institution if a loan was used to purchase the shares

Creating an asset register is an effective way to organise and manage your records. This streamlined approach allows for the disposal of records after 5 years, simplifying the record-keeping process.

Whether you prepare your own tax return or use a tax agent, maintaining accurate records is crucial. If you have any questions regarding record-keeping or other tax-related matters, feel free to contact our office at 1300 620 345.

Proper record-keeping is the foundation for accurate investment income reporting and tax deductions. By following these guidelines and staying organized, individuals can ensure a smooth and compliant tax filing process, ultimately contributing to a more effective financial management strategy.