Will you be able to put your hands on all of the documents you need or is your filing cabinet overflowing onto the desk, floor and beyond?
Spend 10 minutes to set yourself up. Grab 2 manilla folders, one for your 2014-15 tax return and one for your 2015-16 tax return.
Write a list of all the things you need on the front of the 2014-15 folder and tick them off as you go. Here is a link to the ATO website with info about the things you will need.
Place the 2015-16 folder in your filing cabinet and during the year when you have items such as receipts which you can claim, pop them straight in to save you the worry of finding them next year. Include a few plastic sleeves if it would be helpful to collate items by category as well (e.g. receipts, superannuation, investments etc.).
Now, schedule in some time to catch up on the filing and collect your documents so you can get your tax return in early – especially good if you have a refund coming!
I know it isn’t the most exciting job but it has to be done. Once you get back on track, maintaining it takes far less time and energy than having to go through this once a year.
Here are some suggestions for document retention dates for you. Please note that this will depend on your individual circumstances though, so best to double check with your accountant.
| Category | Sub-Category (if relevant) | Suggested Retention Period |
| Banking* | Credit CardJoint Accounts Personal Loans Savings/Cheque Accounts | Some of your statements will fall under tax. Other statements should be retained for up to 1 year only. |
| Education records | – | Retain transcripts indefinitely for the highest level of education achieved. |
| Employment records | – | 10 years |
| Health | Insurance | 1 year or until new documents are received |
| Medical records | 1 year. Documentation relating to an ongoing condition may need to be retained for an extended period. | |
| Home* | Rental | 1 year past completion of agreement |
| Purchase | Indefinite | |
| Insurance | 1 year or until new policy documents are received | |
| Legal matters | – | Seek advice from your legal representative. |
| Security Clearance* | – | 10 years (or until new application has been completed) |
| Tax returns | – | 5 years |
| Travel records* | – | No need to retain except for purposes of evidence for security clearance. |
| Utilities | Most recent statement only unless you need to claim on tax. | |
| Vehicles | Purchase | 1 year after vehicle is disposed of |
| Maintenance | 1 year or until warranty for service/parts expires | |
| Insurance | 1 year or until new policy documents are received | |
| Registration | 1 year or until new documents are received | |
| Warranties | – | Attach proof of purchase to warranty document and retain until warranty expires. |
* Evidence of residential address, employment history, financial situation and travel will be required for at least 10 years for the purpose of a high level government security clearance.
In most cases, you can access the information again if you need it. For example, if you need an old credit card statement, you can just ring up your bank or go online and request a report. You don’t need to hang on to information “just in case” as it is taking up valuable space in your home.
Once you are on top of the paperwork pile, focus on maintenance. Establish a daily or weekly routine for dealing with the incoming flow of paperwork to your home. I will give you some tips for this in a future post.
Happy filing!
Melissa x