The 2026–27 financial year is now underway. While the end of the financial year may still feel some time away, keeping your records organised from the beginning can make preparing your accounts and tax return much easier. It also gives your accountant the information needed to identify the correct tax treatment and any deductions you may be entitled to claim. With several changes applying from 1 July 2026, here are some practical areas for individuals and business owners to keep on top of throughout the year.

Keep records as transactions occur

Saving receipts and recording transactions as they occur is much easier than trying to reconstruct everything at the end of the financial year.

Keep relevant documents such as receipts, bank statements, working-from-home records, rental property expenses, investment documents and details of assets purchased. Electronic records are generally acceptable if they are clear and accessible.

It can also help to add a brief note to unusual transactions, such as a large purchase, new loan, insurance payment or change in how an asset is used. Most tax records generally need to be kept for five years, although some records relating to assets, capital gains and losses may need to be retained for longer. See the ATO’s guidance on keeping records.

Separate business and private expenses

For business owners, keeping personal and business transactions separate can make bookkeeping and year-end accounts much easier to prepare.

Where possible, use a separate business bank account and credit card. If a private expense is paid from the business account, make sure it is identified and recorded correctly rather than treated as a business deduction.

It is also worth reviewing your accounting file regularly to make sure transactions are reconciled, receipts are saved and new assets are correctly recorded. A short monthly review can prevent a much larger tidy-up later.

Record your working-from-home hours

If you regularly work from home, record your actual hours throughout the year rather than estimating them later. A calendar, spreadsheet or timesheet can be used, provided it clearly shows the hours worked from home.

You should also keep invoices and supporting records for items such as office furniture, computers, equipment, software and subscriptions.

Many household expenses have both a work and private component. Keeping suitable records gives your accountant the information needed to determine whether an expense can be claimed and how the work-related portion should be calculated. See the ATO’s working-from-home guidance.

Keep track of work-related car travel

If you use your car for eligible work or business travel, keep a record of the kilometres travelled and the reason for each trip.

For the 2026–27 income year, the cents-per-kilometre rate is 91 cents per kilometre. Under this method, you can claim up to 5,000 eligible kilometres for each car, but you still need a reasonable basis for the kilometres claimed.

The logbook method may provide a better result in some circumstances, provided the required records are maintained. See the ATO’s cents-per-kilometre guidance.

Keep clear rental property records

Rental property owners should retain records for all income and expenses relating to their property, including rental statements, loan interest, rates, insurance, property management fees, repairs and improvements.

Repairs and general maintenance should be kept separate from renovations and capital improvements, as they may receive different tax treatment.

Where a property loan has been refinanced, redrawn or partly used for private purposes, retain the loan statements and details showing how the borrowed funds were used. The tax treatment of interest generally depends on how the borrowed money was used, rather than the property offered as security.

Holiday homes may involve additional considerations where the property is also used privately or is not genuinely available for rent. For more information, see our article, [Own a Holiday Home That You Also Rent Out?].

Retain investment and asset documents

Keep records relating to the purchase, ownership and sale of investments and other assets. This may include share transaction statements, managed fund statements, cryptocurrency reports, property settlement documents and records of improvements made to an asset.

These documents may be needed many years later to calculate a capital gain or loss. While some information may appear through the ATO’s pre-fill system, it is still important to retain your own records and check that the information is complete. See the ATO’s capital gains tax guidance.

Keep records even with the new standard deduction

From 1 July 2026, eligible taxpayers can choose a standard deduction of up to $1,000 for work-related expenses.

It is still worthwhile keeping your receipts throughout the year, as your actual eligible expenses may be higher than the standard deduction. It also does not replace the need to retain records for rental properties, investments, business expenses or other deductions.

For a more detailed explanation, see our article, [The New $1,000 Standard Deduction: What You Need to Know], or visit the ATO’s standard deduction guid

Employers should stay on top of Payday Super

Payday Super commenced on 1 July 2026. In most cases, super guarantee contributions must now reach an employee’s super fund within seven business days after payday.

Employers should make sure their payroll processes, employee super details and cash flow arrangements support the new requirements. Rejected or returned contributions should also be followed up promptly.

For more information, see our article, [Payday Super: What Employers Need to Know], or visit the ATO’s Payday Super guidance.

Starting early can make the end-of-year process much smoother. Saving documents as transactions occur, reconciling accounts regularly and keeping brief notes about unusual items can help ensure your records are complete and your tax work is prepared efficiently. A little organisation throughout the year can give both you and your accountant more time to focus on the matters that are most important. Please contact MKG Partners if you have any questions about the records you should retain or the changes applying during the 2026–27 financial year.