Benchmarks for Performance of Australian Business

Australian tax office has huge database of information regarding the industry operations and have benchmarks of performance in various industries. They use various financial ratios in order to compare the performance of individual business with that of industry performance.

You need to ensure that you select correct industry code along with your tax return in order to ensure that you fall under correct business code.

These benchmarks are expectations of ATO from individual businesses and expect the same level of performance than that. Business operating out of benchmark may attract the attention of ATO.

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How long to keep Bookkeeping documents for Australian business

Documentation is at heart of accounting. However question arises as to the time period for which the tax records needs to be maintained.

How long am I required to keep my tax records :

There is a requirement that you need to keep your tax records for five years from the date you file your tax returns.

However there are certain cases in which you are required to keep the tax records for enhanced time period. For example in case you are availing depreciation on assets, you need to keep records for more than 5 years. You need to keep proof of purchase of asset for period more than 5 years.

Medium of Storage: You can keep the records in electronic form as well. However the same should be easily accessible and should be in English Language.

You need to have a good record keeping system in place in order to avoid any trouble in future. Absence of record keeping can lead to heavy penalties as dis-allowance of tax deductions.

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