What records do I need to keep for my sole trader business in Australia?

The ATO requires you to keep records that explain all your business transactions. These must be kept for **5 years** from the date you lodge your tax return. Essential records include: - **Income:** Invoices issued, bank statements, and any other evidence of money received. - **Expenses:** Tax invoices and receipts for all business purchases. If a purchase is over $82.50 (including GST), you MUST have a tax invoice to claim GST credits. - **Assets:** Records of when you bought an asset, how much you paid, and how you calculated depreciation. - **Bank records:** Business bank account statements. - **Logbooks:** If claiming car expenses or home office via specific methods. Digital copies are acceptable (and often preferred) as long as they are true and clear copies of the original.

• Keep records for 5 years
• Tax invoices required for purchases > $82.50
• Digital records are legally acceptable
• Records must be in English or easily convertible
• Use software like AnyTax to organize receipts