CGT Record Keeping Requirements
Proper record keeping is essential for calculating CGT accurately and defending your position during ATO audits. Learn what to keep and for how long – including critical ownership cost records for holiday homes that can reduce your CGT by tens of thousands.
How Long to Keep Records
The ATO requires you to keep CGT-related records for 5 years after you dispose of the asset (i.e., after you sell the property).
Purchase: 2015
Sale: 2025
Tax return lodged: October 2026
Keep recordsuntil: October 2031 (5 years from lodgement)
Purchase Records
Keep all documents related to acquiring the property:
- Contract of sale: Original purchase agreement
- Settlement statement: Final breakdown of purchase price and adjustments
- Stamp duty receipt: Proof of stamp duty paid (adds to cost base)
- Conveyancing fees: Legal fees and disbursements (add to cost base)
- Valuation reports: If obtained at purchase for loan purposes
- Building and pest inspection reports: May support initial repair claims
- Loan documents: Mortgage contracts and loan statements
Capital Improvement Records
All capital improvements add to your cost base and reduce CGT. Keep:
- Invoices and receipts: From builders, tradespeople, and suppliers
- Contracts: For renovation or construction work
- Quotes: Multiple quotes obtained for major works
- Council permits: Building permits and approval fees
- Architect/design fees: Professional fees for planning improvements
- Photos: Before and after images documenting the improvements
- Bank statements: Showing payments for improvements
Depreciation Records
Depreciation claimed reduces your cost base. Keep:
- Depreciation schedules: Quantity surveyor reports (original and updated versions)
- Tax returns: Showing depreciation deductions claimed each year
- Capital works calculations: Division 43 deduction records
- Plant and equipment records: Division 40 deduction records
- Receipts for new assets: Appliances, carpets, blinds installed during ownership
You claimed $80,000 in depreciation over 10 years. This reduces your cost base by $80,000, increasing your capital gain by $80,000. Without accurate depreciation records, you might miscalculate your CGT.
Holiday Home and Personal-Use Property Cost Base Records
For holiday homes and personal-use properties (not rented out), you can include ownership costs in your cost base under Element 3 - Costs of Ownership. This significantly reduces your capital gain when you sell.
Keep all records of ownership costs over the entire period you owned the property:
Interest and Financing Costs
- Loan statements: Annual summaries showing interest charged on mortgage or personal loans
- Bank statements: Monthly statements showing loan interest debits
- End-of-year tax statements: From lenders showing total interest paid each financial year
- Loan discharge statements: Showing final interest charges and discharge fees
- Refinancing documents: Break fees, discharge costs, new loan establishment fees
- Construction loan records: Interest during construction period (if building)
Council Rates, Land Tax, and Insurance
- Council rates notices: Annual or quarterly rates notices for every year of ownership
- Water rates: Water usage and service charges (if applicable)
- Land tax assessments: Annual land tax notices from state revenue office
- Building insurance policies: Annual renewal notices and premium receipts
- Contents insurance: Policies covering your holiday home contents
- Landlord or holiday rental insurance: If property listed for short-term rental
- Payment confirmations: Bank statements or receipts showing payments made
Repairs, Maintenance, and Other Ownership Costs
- Repair invoices: Plumber, electrician, handyman, roof repairs, painting
- Body corporate or strata levies: Quarterly levy notices and payment receipts (for apartments/units)
- Garden and grounds maintenance: Lawn mowing, landscaping, tree removal
- Pest control: Annual termite inspections and treatment
- Cleaning services: Regular property cleaning and upkeep
- Utilities: Electricity, gas, water usage during vacancy or personal use
- Property management fees: If you used a caretaker or management service (for personal use periods)
Key Rule for Holiday Homes
For pure personal-use holiday homes, you can include all ownership costs (interest, rates, insurance, repairs) in your cost base because you couldn't claim them as tax deductions. Keep every receipt and statement.
Over 10-20 years, these costs can add $100,000+ to your cost base, dramatically reducing your CGT liability.
If you rented the property for some periods (Airbnb, holiday rental), you can only include costs in your cost base for personal-use periods. Costs claimed as tax deductions during rental periods cannot be added to cost base. Keep separate records showing which costs apply to personal vs rental use.
Interest on loan (10 years): $120,000
Council rates ($2,500/year × 10): $25,000
Insurance ($1,800/year × 10): $18,000
Repairs and maintenance: $15,000
Body corporate levies: $22,000
Total ownership costs added to cost base: $200,000
Without these records, you'd pay CGT on an extra $200,000 of capital gain. At a 37% marginal rate with 50% discount, that's $37,000 more in tax.
Rental Income and Expense Records
If you rented out the property, keep records to calculate partial CGT exemptions:
- Tenancy agreements: Showing rental periods and rental amounts
- Rental income records: Bank statements, rent rolls
- Property management statements: Monthly reports from agents
- Expense records: Receipts for repairs, maintenance, rates, insurance
- Tax returns: Showing rental income and deductions claimed
These records help calculate:
- Time-based apportionment (period rented vs total ownership)
- Whether you qualify for the 6-year absence rule
- Partial main residence exemptions
Main Residence Exemption Records
If claiming the main residence exemption (or 6-year absence rule), keep:
- Proof of occupancy: Utility bills, electoral roll records, driver's license address
- Move-in and move-out dates: Change of address records, lease terminations (if you were renting elsewhere before)
- School enrollment records: Demonstrating family residence
- Mail redirection: Australia Post records showing address changes
- Insurance policies: Home and contents insurance showing the address as your residence
Mint Tip
The ATO scrutinizes main residence claims. The more evidence you have of actually living in the property, the stronger your exemption claim.
Sale Records
When you sell the property, keep:
- Contract of sale: Final sale agreement
- Settlement statement: Breakdown of sale price and adjustments
- Agent commission invoice: Real estate fees (deducted from sale proceeds)
- Legal fees: Solicitor/conveyancer costs for the sale
- Advertising and marketing costs: If paid separately from agent commission
- Valuation reports: If obtained for sale purposes
These costs reduce your capital gain and lower your CGT liability.
Mixed-Use Property Records
If you rented out part of your home (granny flat, room), keep:
- Floor plans: Showing total property area and granny flat/room area
- Apportionment calculations: How you calculated the rental percentage
- Rental agreements: For the granny flat or room
- Construction invoices: If you built the granny flat
- Photos: Showing the layout and separate access
Digital vs Physical Records
The ATO accepts both digital and physical records:
Digital Records
- Scanned copies of receipts, invoices, and contracts
- Electronic bank statements and tax returns
- Photos stored digitally (cloud storage, hard drives)
- Property management software records
Physical Records
- Original contracts and legal documents
- Paper invoices and receipts
- Filed tax returns
Mint's Fresh Take
Digital records are more convenient and less likely to be lost or damaged. Mint automatically stores all receipts, invoices, and expense records digitally – accessible anytime for CGT calculations.
What Happens if You Don't Have Records?
Without proper documentation:
- Higher CGT: You can't prove capital improvements, resulting in a lower cost base and higher capital gain
- Denied deductions: The ATO may disallow costs you can't substantiate
- Penalties: Incorrect CGT calculations can trigger penalties and interest
- Audit risk: Poor record keeping increases the likelihood of ATO audits
You spent $50,000 on renovations but lost the invoices. Without proof, you can't add these costs to your cost base.
Increased capital gain: $50,000
After 50% discount: $25,000
Extra CGT (at 37%): $9,250
Cost of poor record keeping: $9,250
Organizing Your CGT Records
Create a dedicated CGT folder (physical or digital) with sections for:
- Purchase documents
- Capital improvements (chronological order)
- Depreciation schedules and tax returns
- Rental income/expense records
- Holiday home ownership costs: Interest statements, rates notices, insurance policies (annual folders)
- Main residence evidence
- Sale documents
Organizing Holiday Home Records
Create annual folders for each year of ownership containing: loan interest statements, council rates notices, insurance renewals, and repair receipts. This makes it easy to total up ownership costs when you sell.
Mint's Takeaway
- Keep CGT records for 5 years after you sell the property (from the date of lodgement).
- Essential records: purchase/sale contracts, stamp duty receipts, capital improvement invoices, depreciation schedules, and rental records.
- Holiday homes: Keep all loan interest statements, rates notices, insurance policies, and repair receipts – these ownership costs can add $100,000+ to your cost base over 10-20 years.
- Without documentation, you can't prove capital improvements or ownership costs – resulting in higher CGT.
- Digital records are acceptable and more convenient than physical storage.
- Track depreciation carefully – it reduces your cost base and increases CGT.
- Main residence exemption claims require proof of occupancy (utility bills, voter records).
- Poor record keeping can cost thousands in disallowed deductions and higher CGT.
Mint automates CGT record keeping by storing all receipts, tracking improvements, and calculating your cost base – ensuring you're audit-ready when you sell.