Year-End Business Records: What to Keep, What to Shred and Where to Store It All

Financial year-end is coming up fast. 30 June has a way of sneaking up on you, and suddenly you've got a filing cabinet that won't close, a pile of boxes that were "temporary" two years ago, and a vague anxiety that somewhere in that pile is something the ATO might ask for one day. 

The good news: once you know what you actually have to keep, what you can shred and where the rest should live, the whole thing gets a lot less stressful. Most business owners tell us it took far less time than they expected. 

This guide walks you through all three. We’ve kept it practical and jargon-free. For the official rules, the ATO’s record-keeping page is the authoritative source, but we’ll give you the plain-English version here, along with some honest advice about how business storage fits into the picture. 

1. Why these matters (and what can go wrong) 

Nobody loves talking about record-keeping obligations. But here’s the short version of why it’s worth getting right. 

The ATO requires most businesses to keep records for at least 5 years. Not as a suggestion as a legal requirement. If they ever review your tax affairs and you can’t produce the supporting documents, the consequences range from denied deductions to formal penalties. The ATO’s overview of record-keeping rules has the full breakdown, but the key point is simple: if you claim it on a tax return, you need to be able to back it up. 

Employment records are a separate obligation. Under the Fair Work Act, time and wages of records need to be kept for 7 years longer than the standard ATO period. The Fair Work Ombudsman is clear that employers who can’t produce records may have to prove in court they didn’t underpay staff. That’s a difficult spot to be in. 

The good news is that you don’t need a complicated system. You just need a consistent approach and somewhere sensible to put the documents once they’ve left active use. 

2. How long to keep what: your year-end reference table 

This is the table most business owners wish they’d had years ago. It covers the most common record types and the minimum time you’re required to keep them. 

A couple of things worth knowing: 

• The 5-year ATO rule has exceptions. Capital gains records carry losses, and depreciating assets can require longer retention, sometimes significantly longer. If you’re unsure, the ATO’s page on records to keep longer than five years spells it out. When in doubt, keep it. 
• Use 7 years as your default for any employment related. The Fair Work Small Business guide has a handy checklist if you want to double-check what to keep for your specific setup. 
• Paper documents are fine as the ATO accepts physical records if they’re stored safely and can be produced when asked. “Safely” matters: heat, humidity and pests are the main threats to paper over several years. More on that in Section 7. 

3. The simple sort: three piles, one clear-out 

Once you know the rules, the year-end sort becomes genuinely manageable. Think of everything as one of three things: 

• Keep on-site (active): things you actually use day-to-day current contracts, open invoices, active employee files, current licences and permits. 
• Archive offsite: documents you’re legally required to keep but don’t need to touch regularly. Prior-year tax records, historical payroll, closed contracts, and old bank statements. These are the boxes that belong to storage, not in your office. 
• Shred securely: anything past its retention date, duplicates, and records with no legal or business value. Never put confidential business documents in the recycling bin. 

Here’s a quick reference to help you split the most common document types: 

4. The space problem nobody talks about 

This is the thing that catches most businesses off guard. It’s not the rules that are the problem it’s the physical reality of what 7 years of records look like. 

A standard four-drawer filing cabinet holds about three to four years of records for a small business. It also takes up roughly 15 square feet of floor space. To store 7 years of records on-site, most businesses need two to four cabinets. That’s 30 to 60 square feet of your office tied up in documents nobody looks at from one year to the next.

Moving historical records to a storage unit costs a fraction of the commercial rent equivalent of the space those filing cabinets occupy. And it gives you your office back. 

5. How to box it up and move it out: the short version 

The physical side of this is pretty straightforward. Here’s what actually works. And if you need boxes, tape and packing materials, the StorHub box shop stocks everything you need, available on-site at our facilities. 

1. Sort before you pack. Shred what you no longer need to keep before boxing anything. You don’t want to pay to store documents that should have been destroyed years ago. 
2. Group by year and document type. Pack records in consistent batches financial year by financial year, then by type within each year. Future-you will be very grateful. 
3. Label every box clearly on all four sides and the top. Write the document type, financial year, and the earliest date the box can be destroyed. 
4. Keep a master index. A simple spreadsheet with box numbers, contents and year is all you need. Store it digitally so you can find anything quickly without driving to the unit first. 
5. Use proper archive boxes, not moving boxes. Standard cardboard moving boxes aren’t designed to stack underweight for years at a time. Archive-grade boxes are sturdier and more secure. 
6. Get the boxes off the floor. Even in a climate-controlled unit, keeping boxes on shelving reduces any risk of moisture at ground level. Our moving services page has more detail on transport and set-up if you’re moving a large volume. 
7. Write a destruction date on every box. Note when each box can be destroyed on the label and in your index. Set a reminder. Keeping a destruction schedule means your storage footprint stays manageable over time. 

6. How one Revesby business got on top of it 

Marcus runs a small construction management business in Revesby. Four staff, twelve years of trading, and until last year an increasingly chaotic records situation. 

“We had filing cabinets in the main office, boxes in the storeroom, and a pile of stuff in the back corner that nobody had dealt with since about 2019. We knew it was a problem. We just kept putting it off.” 

A routine chat with his accountant was the trigger: some prior-year tax records couldn’t be found, and a few employment files were in poor condition. Nothing was missing, it was disorganisation but it was enough of a push. 

Marcus and his bookkeeper spent one Saturday morning going through everything. They worked out which financial years’ records needed to be kept but didn’t need to be in the office. They sorted, boxed, and labelled everything clearly. By that afternoon, four boxes were sitting in a storage unit five minutes from the office. 

“It costs less per month than what we were paying for a single cabinet rental from the stationery supplier. We got an entire room back. And everything is now labelled and organised in a way that makes sense.” 

The thing that made the difference 

The single most useful step Marcus took before moving anything was building a master index. Just a simple spreadsheet: box number, contents, year, and the date it could be destroyed. When the ATO later requested documentation for a contractor payment from the 2021–22 year, he found the right box in under three minutes. 

He also added StoreProtect before moving-in. For a construction business where contracts can involve significant sums, having coverage on the archived legal documents was an easy call. Simple to add no separate insurance policy to manage. 

7. What to look for in a storage unit for business records 

Not all storage units are equal for documents. Here’s what matters: 

Security 

Business records contain sensitive stuff financial figures, employee details, client agreements, contractor payments. Your storage facility should have 24/7 CCTV, individual unit alarms, and PIN-controlled access. Not just a padlock on a shared corridor. 

24/7 access 

Document requests don’t arrive on convenient days. An ATO enquiry might come on a Friday afternoon. A client dispute might need a specific contract pulled at short notice. Having 24/7 access means you can retrieve what you need when you actually need it, not when the facility happens to be open. 

Month-to-month terms 

Your storage needs to change from year to year; you’ll add new records at the end of each financial year and remove boxes as their destruction dates come around. Month-to-month contracts mean you’re never locked into more space than you need. 

8. How early should you book? 

The end of financial year and tax time are the busiest periods for business storage. Compact units the 5 m² to 10 m² range that suits document archives go quickly. Here’s a rough guide: 

StorHub has locations across Australia including Rouse Hill, Forestville, Homebush, Revesby, Miranda, North Lakes, Braeside, Seaford and Fyshwick.   Online booking is open 24/7, and many locations can set you up the same day or next day. 

Frequently Asked Questions 

How long does the ATO require businesses to keep financial records? 

The standard rule is 5 years from when you prepared or obtained the record or completed the transaction, whichever is later. Some records need to be kept longer: capital gains records must be kept for 5 years after you dispose of the asset, and records for depreciating assets stay on file for as long as you own the asset plus another 5 years. The ATO’s record-keeping page has the full breakdown. 

How long do I need to keep employee records? 

7 years for time and wages records under the Fair Work Act longer than the standard ATO period. This applies to all employers, regardless of their business size. The Fair Work Ombudsman’s guidance covers exactly what those records need to include. 

Can I actually store business documents in a self-storage unit? 

Yes, and it’s a really practical option for businesses that have outgrown their on-site space. The two things that matter most are climate control (to protect paper from heat and humidity) and security (individual alarms and PIN access). StorHub’s business storage units are climate-controlled and have 24/7 PIN access at all locations. 

What size unit do I need for document storage? 

For most small businesses archiving one to five years of records, a 5 m² to 10 m² unit is plenty. If you’re consolidating a big backlog, or storing equipment alongside documents, 10 m² to 15 m² is more comfortable.  

Is professional shredding worth it? 

For a small number of personal documents, a cross-cut shredder at home is fine. For anything involving employee details, financial records, client information or legal agreements, professional shredding is worth it it’s more secure and provides a certificate of destruction if you ever need to show you’ve handled the documents responsibly. Local shredding services typically charge by the box. 

Are my documents covered while they’re in storage? 

StorHub facilities have 24/7 CCTV, individual unit alarms, and PIN-controlled access. For extra peace of mind on valuable documents, original contracts, legal agreements, anything that would be difficult to replace StoreProtect is a straightforward add-on with no separate insurance policy to manage. 

Can I get my documents at any time? 

Yes. All StorHub facilities have 24/7 PIN-code access. Whether it’s a Saturday morning, a late Friday afternoon or a public holiday, you can get in when you need to. 

What if I need the unit for longer than I planned? 

No problem, month-to-month terms mean you simply extend. There’s no penalty for going longer, and you only pay for the time you actually use. Most businesses find this flexibility is one of the main reasons self-storages work so well for document archiving. 

The part nobody tells you 

The businesses that get through year-end most smoothly aren’t the ones with the fanciest systems. They’re the ones who made one practical decision: keep what needs to keep, destroy what doesn’t, and get the rest out of the office. 

Moving historical records offsite is usually a Saturday morning job. What you get back is a clearer workspace, a calmer headspace at audit time, and the confidence that if the ATO or Fair Work ever asks for something, you know exactly where it is. 

If year-end is creeping up and the paper pile is growing, it’s worth a look. You can find your nearest StorHub location here, or explore more guides and tips on the StorHub blog.