4-year period of review
For tax periods and fuel tax return periods starting on or after 1 July 2012, a 4-year period of review applies where we may amend an assessment for GST, LCT, WET or fuel tax credit amounts.
The period of review starts on the day on which we first give notice of the assessment. In most cases, this will be the same day you lodge your BAS. The period of review ends 4 years from the day after the notice of assessment is given.
After the period of review ends, an amendment will only be made by us in limited circumstances:
- to give effect to a decision on a revision request or amendment application already received
- where an assessment has been disputed
- where there is fraud or evasion.
There are additional time limits for claims of GST credits and fuel tax credits. The 4-year credit time limit may apply to cease your entitlement to a credit despite the period of review still being open. If you have GST credits or fuel tax credits that you haven't claimed before, you don't have to revise or amend the original period where you could have claimed them. You can claim those credits in your current BAS, provided the current BAS is lodged within the 4-year credit time limit for those credits.
Example: applying for an amendment during the period of review
Esmeralda runs a jewellery store and is registered for GST. She lodges a BAS for the tax period ending 30 September 2012 on the due date of 28 October 2012. Her 4-year period of review starts on 28 October 2012 and ends on 29 October 2016. The 4-year credit time limit for GST credits for the September 2012 tax period ends on 28 October 2016.
Esmeralda applies for an amendment on 14 August 2016, which is within the period of review. We can amend her assessment after the end of the period of review to give effect to our decision on her request. However, if Esmeralda's amendment request was for additional GST credits, the GST credit can only be included if we make the amended assessment by the end of 28 October 2016.
End of exampleRefreshed period of review
An assessment that is amended during the period of review is subject to a refreshed 4-year period of review, but only for the particular that has been amended. It does not open the entire assessment to a further 4-year period of review.
For each particular, there is only one refreshed period of review and only one further amendment allowed within the refreshed period of review. If different particulars are amended in the period of review, a separate refreshed period of review applies for each.
It is important for you to keep track of your amendments so you can identify whether you are able to apply for any further amendments for a relevant tax period. The refreshed period of review can't be extended.
Example: refreshed period of review
Jeanette operates a shoe shop and is registered for GST. On 28 October 2012, she lodges a GST return for the tax period ending 30 September 2012.
On 14 October 2016 Jeanette applies to us for an amendment to claim GST credits on 2 tax invoices (A and B) of $100 each. Although these GST credits relate to the tax period ending 30 September 2012, she has misplaced the invoices and hasn't attributed the GST credits to any later tax period. On 25 October 2016, we amend the assessment to allow the GST credits on both invoices. The GST credits for tax invoices A and B represent Jeanette's full GST credit entitlement. This means that any amendments during period of review or refreshed period of review would be to decrease the amount of the GST credit claimed. Decreases to GST credits are not impacted by the 4-year credit time limit.
On 30 October 2016 (during the refreshed period of review) we review Jeanette's assessment and disallow the credits in relation to invoice B. As one amendment in relation to the credits on invoice B has now been made during the refreshed period of review, we can't make any more amendments to the credits in relation to invoice B. However, the credits in relation to invoice A may still be amended once before the refreshed period of review ends on 26 October 2020, either at Jeanette's request or by us.
Note: The 4-year credit time limit must also be considered when making any amendments to claim additional GST credits. If the 4-year credit time limit has ended, entitlement to the GST credits has ceased. This is so even if the period of review has not yet ended.
End of exampleWatch
Media: There's a time limit for amending or revising your BAS
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubxjyfuh (Duration: 1:56)
Identifying an amended particular
An amended particular will increase or decrease the assessable amount. It could be about a single sale or a single purchase.
A particular is included in the calculation of your assessed amount, and is a specific item that will affect the total amount of:
- GST payable for sales
- GST credits or fuel tax credits for purchases
- increasing or decreasing adjustments (including fuel tax adjustments)
- luxury car tax payable or adjustments for luxury car tax
- wine tax payable or wine tax credits.
Example: further amendment to a particular
XYZ Enterprises includes GST on the taxable sale of nails ($100 GST payable) and on a taxable sale of wood ($200 GST payable) in the same tax period. XYZ Enterprises lodges its GST return for that tax period but due to an accounting error, forgets to include the GST payable on the sale of the wood in this (or any other) GST return.
During the period of review, XYZ Enterprises identifies this error. XYZ Enterprises asks the Commissioner to amend its assessment to reflect the GST payable but gives an incorrect amount of $300 (instead of $200). The Commissioner issues a notice of amended assessment (the earlier amendment) to include the omitted $300 of GST payable on the wood (however this amount is still wrong).
XYZ Enterprises can make a further amendment in relation to the sale of wood to reduce GST payable by $100, after the period of review expires in the refreshed period of review.
XYZ Enterprises then discovers after the period of review expires that it didn't make a sale of nails, but mistakenly included GST in its GST return for that tax period.
As this overpayment of GST is a separate particular (not the sale of wood), and it was not amended during the period of review, there is no refreshed period of review for this particular and XYZ Enterprises can't make a later amendment for the nails.
The application of Division 142 of the A New Tax System (Goods and Services Tax) Act 1999, which is about refunds of excess GST, hasn't been considered in this example.
End of exampleAmendments outside the period of review
We may still make an amendment after the period of review has ended, if you apply for a private ruling, or request an amendment within the period of review. This means that where we have not processed your amendment or private ruling application before the end of the period of review, we are still able to make the amendment to give effect to the decision we make, or advice we give, after the period ends.
However, where your amendment request or private ruling relates to GST credits or fuel tax credits that have not been included in an assessment previously, we won't be able to amend your assessment to give effect to your amendment request or private ruling decision once the 4-year credit time limit has expired in relation to those credits.
Where we advise you to seek an amendment, and you choose not to apply for one, the usual time limits apply. If you choose to apply for an amendment, this does not extend the period of review.
We may also make an amendment at any time:
- to give effect to anti-avoidance declarations
- to give effect to a decision relating to objections, reviews or appeals
- where there is fraud or evasion
- if an objection relates to GST credits or fuel tax credits that have not been included in an assessment, we won't be able to allow these credits if the 4-year credit limit period had ended before the objection was lodged.
Extension of period of review
Where we have started an examination of your affairs and haven't completed the examination before the end of the period of review, the period of review may be extended for a specified period by the Commissioner:
- applying to the Federal Court before the period of review ends, for an order to extend the period
- requesting your consent, before the period of review ends, and you consent in writing to that request.
The period of review may be extended more than once, provided an application or request is made within the extended period of review.
Any extension to the period of review does not change or extend the 4-year credit time limit.
Example: extending the period of review
Connie and Karen are partners in a GST-registered partnership which has complex tax affairs. We are examining an activity statement of the partnership that was lodged almost 4 years ago. As part of our examination, we are reviewing different amounts on the partnership's activity statement, making a number of detailed enquiries about the partnership's affairs, and have made several requests for information. These are all taking the partnership some time to complete.
We become aware that our examination of the partnership's affairs is unlikely to be completed before the end of the period of review for the assessment of the relevant activity statement. We contact Connie and Karen and request a 3-month extension. After consulting with their tax advisers, Connie and Karen agree to the extension in writing. This consent will extend the 4-year period of review by 3 months.
If we haven't completed the examination of the partnership's affairs within this extra period of time, but we are still within the period of review, we may request a further extension of time from Connie and Karen, or we can apply to the Federal Court for an order for an extension of time to the period of review.
End of exampleFor more information see: