As the new year gets underway, it’s a timely reminder to check whether your business is claiming everything it’s entitled to. GST credits and fuel tax credits can make a real difference to cash flow, but they’re often overlooked or left too late.

Getting on top of these now can help ensure you’re not leaving money with the ATO unnecessarily.

GST credits – what you can claim back

GST credits, also known as input tax credits, allow GST-registered businesses to recover the GST paid on business-related purchases. When you buy goods or services for your business and GST is included in the price, you can generally claim that GST back through your BAS, reducing the amount payable to the ATO.

To be eligible:

• Your business must be registered for GST.
• The purchase must relate to your business activities (not personal use).
• The supplier must have charged GST.
• A valid tax invoice is required for purchases over $82.50 (including GST).

One commonly missed issue is timing. GST credits are not available forever. You have four years from the BAS due date for the period in which the credit could first have been claimed. Once that window closes, the credit is lost – even if the expense was clearly business-related.

This makes it important to review older expenses and prior BAS lodgements before the four-year limit expires.

Fuel tax credits – another opportunity for savings

Fuel tax credits can also provide valuable savings for businesses that use fuel in eligible vehicles, plant or equipment. These credits refund some or all of the fuel excise already included in the fuel price when that fuel is used for qualifying business activities.

To claim fuel tax credits:

• Your business must be registered for GST.
• You must also be registered for fuel tax credits.

Fuel tax credit rates change over time and are indexed twice each year. The rate you can claim depends on how and where the fuel is used.

Not all fuel use qualifies. For example, fuel used in passenger vehicles or light vehicles travelling on public roads is generally excluded.

Fuel tax credits are also subject to the same four-year time limit, starting from the BAS due date for the period in which the credit could first have been claimed.

A tax agent can help determine whether your fuel use is eligible, which rates apply to your activities, and whether it’s best to amend a previous BAS or include missed credits in your next lodgement.

Start the year right

Leaving credits until the last minute can create unnecessary stress – and missed opportunities. Reviewing your GST and fuel tax credit entitlements early in the year can improve cash flow and help keep your BAS accurate and up to date.

If you’re unsure whether you’re claiming everything you’re entitled to, or you want help reviewing prior periods before time runs out, reach out to us today.