At Cotchy, we understand how crucial it is for businesses to stay on top of their financial obligations and opportunities. One such opportunity is claiming GST credits and fuel tax credits. These credits can significantly reduce the costs of running your business, but there’s a strict 4-year window to claim them. Let’s dive into the details so you don’t miss out.
Understanding GST Credits and Fuel Tax Credits
What Are GST Credits?
If you’re registered for GST and make a business purchase, you may be eligible to claim the GST paid in the purchase price as a credit. GST credits offset the GST you owe when you lodge your Business Activity Statement (BAS). This could reduce your GST liability or even result in a refund.
What Are Fuel Tax Credits?
Fuel tax credits provide reimbursement for the tax included in the price of fuel used in your business operations. If your business is eligible, claiming these credits can help lower operating costs.
The 4-Year Time Limit
You have a maximum of 4 years to claim GST and fuel tax credits from the due date of the earliest BAS in which you could have made the claim. After this time, you lose eligibility for these credits.
Importantly, the credits must be included in your assessment within this timeframe. Lodging an amendment or private ruling request does not automatically preserve your entitlement.
How to Claim Before Time Runs Out
To ensure you make your claims within the 4-year window, here are your options:
- Include Credits in Your Next BAS
If you’ve missed previous BAS periods, you can claim credits in your next BAS, provided it’s lodged within the 4-year limit. - Lodge a Revised BAS (RBAS)
Submit a Revised BAS via Online Services during the 4-year credit time limit. Note that these claims aren’t processed until the RBAS is reviewed. - Lodge a Valid Objection
Filing an objection within the 4-year limit preserves your entitlement to the credits, allowing you to secure your claim.
Cotchy’s Pro Tip: Don’t Wait Until the Last Minute
Leaving claims until the last-minute risks your credits expiring. To avoid this, lodge your BAS on time and keep thorough records to support your claims. If you’re unsure, consulting a registered tax or BAS agent can save you time and stress.
Changes to Fuel Tax Credits
Fuel tax credit rates changed on 1 July 2024 and 5 August 2024. Ensure you’re using the latest rates when making claims on your BAS. If you need guidance, Cotchy is here to help you navigate these changes and maximise your claim.
Let Cotchy Help You Stay Ahead
At Cotchy, we specialise in helping small businesses like yours stay compliant and maximise every opportunity. Don’t let your credits slip through the cracks—our experienced team can assist with lodging your BAS, claiming credits, and keeping your financial records in top shape.
Contact Cotchy Today to Discuss GST Credits and Fuel Tax Credits
If you’re unsure about your eligibility for GST or fuel tax credits, or need assistance with your BAS, contact Cotchy today. Let’s ensure you don’t miss out on valuable credits and keep your business thriving.