• If you have an outstanding indirect tax refund or GST credit

    Outstanding indirect tax refunds

    An outstanding indirect tax refund is any indirect tax refund that you are entitled to, but are yet to claim. The following table provides examples of the types of indirect tax refunds:

    Refund type

    Example

    Refund of a net amount (of GST, WET and LCT) for a tax period

    You are yet to lodge an activity statement for a tax period.

    Your net GST, WET and LCT entitlements for that tax period (which may include decreasing GST adjustments and wine tax credits) amount to $2,000 and this amount exceeds your net GST, WET and LCT liabilities for that period ($1,500).

    As a result, you have an outstanding indirect tax refund of $500 that you may claim, subject to the four-year time limit for indirect tax refunds (for more information, see Four-year time limit for claiming indirect tax refunds).

    Refund of an overpayment of a net amount (of GST, WET and LCT) for a tax period

    Due to a clerical error, you report and pay $5,600 net GST for a tax period instead of the correct amount of $5,060.

    The excess amount ($540) represents an outstanding indirect tax refund that you may claim, subject to the four-year time limit for indirect tax refunds (for more information, see Four-year time limit for claiming indirect tax refunds).

    Refund due to an underreported initial net refund entitlement (of GST, WET and LCT) for a tax period

    You report that you are entitled to a net GST refund of $1,000 for a tax period and are provided with this refund. Subsequently, you discover that you unintentionally accounted for the same amount of GST twice and that your actual refund entitlement for the tax period is $1,200.

    The excess $200 represents an outstanding indirect tax refund that you may claim, subject to the four-year time limit for indirect tax refunds (for more information, see Four-year time limit for claiming indirect tax refunds).

    Refund of indirect tax relating to an importation

    You overpay $100 GST for an importation. This $100 represents an outstanding indirect tax refund that you may claim, subject to the four-year time limit for indirect tax refunds (for more information, see Four-year time limit for claiming indirect tax refunds).

    Attention

    You may not be entitled to claim a refund if the reason for the refund is because you treated a sale as being subject to GST to a greater extent than it actually was subject to GST. For example, you may have incorrectly treated a wholly GST-free sale as being (partly or wholly) subject to GST. Generally, you will only be entitled to claim a refund if your customer is not registered for GST and you have refunded them the amount of any GST you have overpaid.

    End of attention

    Find out more

    MT 2010/1 External LinkMiscellaneous tax: restrictions on GST refunds under section 105-65 of Schedule 1 to the Taxation Administration Act 1953

    End of find out more

    Outstanding GST credits for purchases

    An outstanding GST credit is any GST credit for a purchase that you are entitled to, but have yet to claim – including not claiming because you do not hold a valid tax invoice.

    Generally, if you have an outstanding GST credit for a purchase, you do not need to revise an earlier activity statement that you have lodged in order to claim that credit. Instead, providing you hold a valid tax invoice, you can simply claim the GST credit in the next activity statement you lodge. This is, however, subject to the four-year time limit that applies to GST credits.

    For more information, see Four-year time limit for claiming GST credits for purchases.

      Last modified: 27 May 2014QC 22778