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Act Early: Protect Your GST and Fuel Tax Credit Entitlements

GST and fuel tax credits are not forever—act early to protect your entitlements within the strict 4-year time limit.

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In accordance with the ATO’s Miscellaneous Taxation Ruling MT 2024/1, GST credits and fuel tax credits expire if not claimed within the 4-year credit time limit.

 

1. The 4-Year Credit Time Limit

  • Starting Point: The limit is generally 4 years from the due date of the original BAS in which you could have claimed them.

  • Strict Application: This limit applies strictly. Even if the period of review is still open, the ATO is unable to amend assessments to include credits once they have expired.


2. Lodging an Amendment is Not Enough

  • Processing Requirement: Lodging an amendment request or voluntary disclosure does not preserve your credit entitlements. The ATO must process the amendment and include it in your assessment within the 4-year limit, otherwise, the credits expire.

  • No Discretion: Once credits expire, the ATO has no discretion or ability to amend your assessment to include those credits.


3. Options Available to You

To ensure your entitlements are protected, consider the following options:

  • Claim in Next BAS: Claim the credits in your next BAS that's still within the 4-year credit time limit.

  • Use RBAS: Requesting the amendment by lodging a revised BAS (RBAS) via Online Services is generally processed faster.

  • Valid Objection: Lodging a valid objection against your assessment before the end of the 4-year credit time limit as a last resort.


4. Governance & Scrutiny

  • Governance: Have good governance frameworks to regularly review reporting, reducing the need for near-deadline corrections.

  • Additional Scrutiny: Expect extra scrutiny if seeking to change long-standing positions to uplift GST recovery (e.g., changing apportionment methods). This takes longer to review, so please factor this into your timeframes.


5. Monitoring

To ensure your entitlements are protected, consider the following options:

If you have lodged a request, actively monitor it. If credits are within a month of expiring and it hasn’t been processed, contact the ATO to follow up.

Keep Up to Date

For more information, please refer to the ATO's guidance on MT 2024/1 or consult with your professional tax advisor.


Source of information: Australian Taxation Office (ATO).


Liability Limited By A Scheme Approved Under Professional Standards Legislation.

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