Bills, receipts, bank statements, tax records, insurance policies, warranties and important certificates can quickly turn into piles of household paperwork, but a simple filing system can make documents easier to find while helping protect sensitive personal information.

Start by sorting papers into categories such as household bills, banking, vehicles, insurance, property, medical expenses, warranties and tax. A small filing cabinet or clearly labelled folders can work well, with a separate “action” folder for bills, forms or correspondence requiring attention.

Before throwing anything away, however, check whether it needs to be retained.

The Australian Taxation Office says taxpayers generally need to keep records supporting deductions for five years from the date they lodge their tax return, although some records must be retained longer. Records can be kept electronically, including clear photographs or scans of receipts, provided they are true and clear copies of the originals.

Digitising routine paperwork can dramatically reduce physical clutter. Australia’s cyber.gov.au recommends regularly backing up important digital information such as financial records and documents, using options including cloud storage or external drives. Backups containing sensitive personal information should also be appropriately secured.

Original identity and legal documents deserve particular care. Birth and marriage certificates and other important records should be stored securely and separately from everyday paperwork. The NSW Registry of Births, Deaths and Marriages advises keeping certificates in their original condition and recommends against laminating them. Lost or stolen certificates can also create an identity-security risk.

Once documents are genuinely no longer required, simply putting paperwork containing personal details into household recycling is not ideal. The Office of the Australian Information Commissioner recommends properly destroying personal information before disposal, including shredding documents, to reduce the risk of identity theft.

A regular paperwork clean-out – perhaps every few months – can prevent clutter returning. File what must be retained, scan documents that can be stored electronically, securely destroy what is no longer required and keep outstanding items somewhere visible until they have been dealt with.