ATO Issues Guidance on Time Limits for Claiming Input Tax and Fuel Tax Credits

The Australian Taxation Office (ATO) has released Miscellaneous Taxation Ruling MT 2024/1, which clarifies the time limits that apply to claiming input tax credits and fuel tax credits.

Key Points from MT 2024/1

The ruling outlines the ATO’s interpretation of the four-year entitlement period, as set out in:

• Subsection 93-5(1) of the GST Act 1999 (for input tax credits).
• Subsection 47-5(1) of the Fuel Tax Act 2006 (for fuel tax credits).

Under these limiting provisions, a business loses entitlement to a tax credit if it has not been included in an assessment within four years, unless an exception applies.

Key Considerations for Businesses

• Timing of Claims: Ensure that all tax credits are claimed within the four-year window to avoid missing out.
• Assessment Periods: The ruling explains how to determine when a tax credit has been considered in an assessment and when the four-year period ends.
• Objections & Rulings: Taxpayers may still be eligible to claim a tax credit in certain cases, such as lodging an objection or requesting a private ruling or amendment.
• Retroactive Application: The ruling applies to past and future tax credit claims, meaning businesses must review historical claims to ensure compliance.

How Boa & Co. Can Assist

Navigating GST and fuel tax credits can be complex, especially with strict time limits on claims. At Boa & Co. Chartered Accountants, we can:

• Review your historical tax credit claims to ensure nothing is missed.
• Assist with amendment requests or objections to preserve entitlements.
• Provide guidance on compliance with the four-year rule.

Call us at 1300 952 286, email [email protected], or visit www.boanco.com.au for a consultation.