• Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Rules for correcting mistakes

    If you want to correct mistakes from your previous BAS on your current BAS, some rules apply. These relate to when the mistake occurred and the dollar value of the mistake.

    The value limits apply regardless of whether your entitlement is being increased or decreased. The time limits only apply if your entitlement is being decreased.

    Time limits

    A time limit applies for the correction of mistakes. From the time the mistake occurred (not when it was discovered), you have a limit on the number of subsequent BAS on which you can correct the mistake. If you do not correct the mistake within the time limit, then you will only be able to correct the mistake on the BAS on which the mistake occurred.

    The time limits vary depending on the turnover of your business for GST purposes.

    Attention

    The time limits for correcting mistakes only apply if your entitlement to fuel tax credits is being decreased.

    End of attention

    Table 2: Time limits for correcting mistakes

    Annual turnover Time limit

    Less than $20m

    Up to 18 months, that is:

    • 18 x monthly BAS
    • 6 x quarterly BAS
    • 1 x annual GST return
     

    $20m or more

    Up to three months (3 x monthly BAS)

    Value limits

    The value limit is the maximum dollar amount of corrections you can make on a BAS. You need to work out the net dollar amount of all mistakes from previous BAS that you want to correct on your current BAS.

    The value limit varies depending on the turnover of your business. The limits apply regardless of whether your entitlement is being increased or decreased as a result of correcting the mistake.

    Table 3: Value limits for correcting mistakes

    Annual turnover Value limit

    Less than $20m

    Less than $5,000

    $20m to less than $100m

    Less than $10,000

    $100m to less than $500m

    Less than $25,000

    $500m to less than $1b

    Less than $50,000

    $1b or more

    Less than $300,000

    Table 4: Summary of procedures for correcting mistakes

    Type of mistake Which limits are applicable? How to correct the mistake
      Time limit Value limit Limits were met Limits not met

    Mistakes that increase your fuel tax credit entitlement

    Not applicable

    Yes

    Correct the mistake on your current BAS

    Revise the original BAS on which the mistake occurred

    Mistakes that decrease your fuel tax credit entitlement

    Yes

    Yes

    Example 6: Correcting mistakes within time and value limits

    Jack operates a transport business with a turnover of $1 million. As a result of clerical errors, he incorrectly over claimed $6,000 in fuel tax credits on his previous two quarterly BAS. Jack had also used the wrong fuel tax credit rate for one of his fuel purchases and claimed $2,900 less than he was entitled to. The net effect of his mistakes was $3,100 ($6,000 – $2,900).
    Correcting these mistakes reduces Jack’s fuel tax credit entitlement so he must consider both the value and time limits.
    Jack can correct the mistakes by including $3,100 at label 7C on his current BAS because the net effect of the mistakes he needs to correct does not exceed the value limit of $5,000 or the time limit of six quarterly BAS.
      Last modified: 23 Jul 2013QC 35869