Under the Income Tax Assessment Act 1997, businesses claiming depreciation or roll-over relief must keep depreciation and roll-over records for at least 5 years after the later event. Clock starts: the balancing adjustment event or disposal.
Roll-over choices and transferor notices about depreciating assets, buildings and capital works.
8 provisions in 2 laws apply to these records. Each one is set out below with its own period and start date.
The terms
s 40-340(6)Income Tax Assessment Act 1997
5 years
after the balancing adjustment event occurred
s 40-340(7)Income Tax Assessment Act 1997
5 years
until the end of 5 years after the next balancing adjustment event occurs for the depreciating asset
s 40-360(4)Income Tax Assessment Act 1997
5 years
the earlier of these events: (a) the transferee disposes of the property; (b) the property is lost or destroyed
s 262A(4AA)Income Tax Assessment Act 1936
5 years
the earlier of: (a) the disposal by the person of the property; or (b) the loss or destruction of the property
s 262A(4AC)(b)Income Tax Assessment Act 1936
5 years
the earlier of: (i) the disposal by the person of the property; or (ii) the loss or destruction of the property
s 262A(4AE)Income Tax Assessment Act 1936
5 years
the earlier of: (a) the disposal by the person of the property; or (b) the loss or destruction of the property
s 262A(4AF)(d)Income Tax Assessment Act 1936
5 years
the earlier of: (i) the transferee ceasing to be the owner or lessee of the part of the building; or (ii) the destruction of the building
s 262A(4AJA)(d)Income Tax Assessment Act 1936
5 years
the transferee disposes of the capital works or the capital works are destroyed, whichever is the earlier
Conditions and exceptions Caution
From the provisions:
- Applies where roll-over relief under subsection (3) is jointly chosen
- Applies only where there is roll-over relief because of subsection 40-340(1)
- Not required if the Commissioner has notified the person that retention is not required
- Not required if the person is a company that has gone into liquidation and finally ceased to exist
The law
Income Tax Assessment Act 1997, s 40-340(6) · Roll‑over reliefOfficial text ↗
The transferor must keep the choice or a copy of it for 5 years after the balancing adjustment event occurred.
Text as at 27 August 2026
Income Tax Assessment Act 1997, s 40-340(7) · Roll‑over reliefOfficial text ↗
The transferee must keep the choice or a copy of it until the end of 5 years after the next balancing adjustment event occurs for the depreciating asset.
Text as at 27 August 2026
Income Tax Assessment Act 1997, s 40-360(4) · Notice to allow transferee to work out how this Division appliesOfficial text ↗
The transferee must keep the notice until the end of 5 years after the earlier of these events:
(a) the transferee disposes of the property;
(b) the property is lost or destroyed.
Text as at 27 August 2026
Income Tax Assessment Act 1936, s 262A(4AA) · Keeping of recordsOfficial text ↗
A person who is a party to a joint election for roll‑over relief made under former section 59AA, 122R, 123F, 124AO or 124W must retain the election, or a copy, until the end of 5 years after the earlier of: (a) the disposal by the person of the property; or (b) the loss or destruction of the property.
Text as at 1 July 2026
Income Tax Assessment Act 1936, s 262A(4AC)(b) · Keeping of recordsOfficial text ↗
the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of: (i) the disposal by the person of the property; or (ii) the loss or destruction of the property.
Text as at 1 July 2026
Income Tax Assessment Act 1936, s 262A(4AE) · Keeping of recordsOfficial text ↗
A person who made an election under former paragraph 54A(1)(a) in relation to a unit of property must retain the election, or a copy, until the end of 5 years after the earlier of: (a) the disposal by the person of the property; or (b) the loss or destruction of the property.
Text as at 1 July 2026
Income Tax Assessment Act 1936, s 262A(4AF)(d) · Keeping of recordsOfficial text ↗
the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of: (i) the transferee ceasing to be the owner or lessee of the part of the building; or (ii) the destruction of the building.
Text as at 1 July 2026
Income Tax Assessment Act 1936, s 262A(4AJA)(d) · Keeping of recordsOfficial text ↗
the transferee must retain the notice or a copy of it until the end of 5 years after the transferee disposes of the capital works or the capital works are destroyed, whichever is the earlier.
Text as at 1 July 2026
Income Tax Assessment Act 1997s 40-340(6), s 40-340(7), s 40-360(4) · Federal Register of Legislation
Legislation ↗Income Tax Assessment Act 1936s 262A(4AA), s 262A(4AC)(b), s 262A(4AE), s 262A(4AF)(d), s 262A(4AJA)(d) · Federal Register of Legislation
Legislation ↗Australian Taxation OfficeOfficial guidance
Guidance ↗Other terms that apply to these records
This page covers depreciation and roll-over records on their own. The same file is often caught by other laws as well, with different periods and start dates. See why a legal term is not a schedule.
ScheduleOne
3 records. 3 sets of rules. They don't agree.
One business file can hold all of these at once.
Depreciation and roll-over records5y+Income Tax Assessment Act 1997, s 40-340(6), s 40-340(7), s 40-360(4) · the balancing adjustment event or disposal
Business tax records5yIncome Tax Assessment Act 1936, s 262A(1), (4) · later of preparation or the transaction
Capital gains tax records5y+Income Tax Assessment Act 1997, s 121-25(1)–(2), s 121-20(1), s 121-35(1)(b), s 100-70 · no further CGT event can happen
Now do that for every record your organisation holds, and redo it when the law changes. ScheduleOne has done that work, and keeps it current.
See ScheduleOne →