Correcting and adjusting GST in your activity statements
Read this section if you need to:
- adjust amounts you reported on a previous activity statement
- correct a mistake you made when working out amounts you reported on a previous activity statement
- adjust your current activity statement as a result of making or receiving a third party payment.
From time to time, you may need to make changes that increase or decrease the net amount of GST you are liable to pay for a reporting period. These changes are known as adjustments. Adjustments can be either:
- increasing adjustments – which increase the net amount of GST you are liable to pay
- decreasing adjustments – which decrease the net amount of GST you are liable to pay.
Adjustments can only be made on your current activity statement. They are not the same as correcting errors on a previous activity statement.
When adjustments arise
You may have an adjustment if:
- an event occurs that changes the price of a sale or a purchase (for example, you provide a discount to a customer or receive a rebate from a seller)
- a taxable sale or creditable purchase you made is cancelled (for example, where goods are returned)
- you write off a bad debt or you recover a previously written-off bad debt
- your actual use of a purchase or importation for business purposes differs from your intended use
- you make or receive a third-party payment.
There are other circumstances in which you may need to make an adjustment, such as when you cancel your GST registration or when you sell something you used to make financial supplies.
Correcting GST errors
When completing your activity statement, you may discover that you have made an error on a previous activity statement or left something out.
Generally, to correct an error you must lodge an activity statement revision form with us. You can revise an earlier activity statement online or contact us by phone to obtain an activity statement revision form.
In some cases you can correct the error or omission in the GST section of a later activity statement. Correcting an error on an activity statement is different from making an adjustment. For example, you make an adjustment because the price of a sale or purchase changes, but you make a correction because you have transposed figures incorrectly or accidentally left amounts off your activity statement.
For tax periods that start on or after 1 July 2012, a revision made to an activity statement is an amendment made to an assessment.