Ever feel like you’re drowning in a sea of paper? Sort the paperwork today and reap the rewards tomorrow.
Life can be complicated enough without all the administrative paperwork that often accompanies it. This is particularly true when it comes to your personal finances.
If stacks of old bank statements, utility bills, receipts, insurance and superannuation documents fill your filing cabinet, perhaps its time to de-clutter, simplify your finances and improve your quality of life today.
There are many good reasons to pare back on your financial record-keeping, including:
When it comes to identifying the documents you need to keep, considering your legal obligations is a good place to start.
The first of these is your annual tax return. In order to complete your tax return you’ll need documentary evidence of:
You need to keep these documents for five years after you lodge your tax return in case you’re asked to substantiate your claims, and it’s also a good idea to keep your notice of tax assessments for five years. However, if you run a small business, the document requirements and timeframes different – find out more at the Australian Tax Office (ATO).
The second category of documents are those related to property such as:
Other documents to keep include:
There are some documents you can toss, and as a rule, once a document has been replaced by a newer version, it’s safe to dispose of the older copy.
There’s also no need to hang onto credit card receipts once you’ve reconciled them against your bank statements, unless they’re needed for warranties.
Credit card and bank statements should be retained for a year, while other household paperwork, such as utility bills, can be thrown away once paid, unless you need a copy for rental applications or you want to keep them to compare your usage over time.
The exception to these rules is if the documents are required for tax purposes.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
Shanley Financial Planning Pty Ltd trading as Steve May Financial Services (ABN 19 612 825 180) is a Corporate Authorised Representative of (1265706) of Sensibly Pty Ltd (AFSL 533923)
Nick Shanley, Steve May and Luke Styles are Authorised Representatives of Sensibly Pty Ltd (AFSL 533923)