The Treasury has proposed key updates to Australia’s GST law under the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025, introduced to Parliament in September.
These changes are designed to simplify GST reporting, support inclusive services, and ensure tax credits are attributed correctly across reporting periods.
Below, we break down the most important amendments and how Boa & Co. Chartered Accountants can help Sydney businesses stay compliant.
1. Disability Support Services to Become GST-Free
The Bill confirms that disability services funded under the Disability Services and Inclusion Act 2023 will be treated as GST-free.
This update brings consistency and clarity for service providers working in the disability sector.
What this means:
Registered disability support organisations will no longer need to charge GST on funded services. This reduces administrative complexity and ensures more resources go directly to care delivery.
Action point:
Review your GST classifications now to confirm which of your services qualify as GST-free once the law takes effect. Updating your accounting software early will prevent compliance issues later.
2. Clearer Rules for Input and Fuel Tax Credits
The proposed changes also aim to ensure input tax credits and fuel tax credits are attributed to the correct tax and fuel return periods.
This clarification addresses past confusion where timing mismatches created reporting errors and unnecessary ATO reviews.
What this means:
Businesses will have greater certainty when claiming credits, lowering the risk of audit adjustments and improving overall tax accuracy.
Action point:
Check that your BAS and fuel tax claim cycles are aligned with current ATO timelines. A proactive review now will save time when the amendments take effect.
3. Adjustments to Credit Attribution Timing
The amendments address how the ATO determines the tax period for claiming input tax credits.
In some cases, businesses faced inconsistencies between when a creditable acquisition was recorded and when the Commissioner deemed the credit claimable.
What this means:
The new rules aim to close timing gaps, ensuring businesses can claim credits in the correct reporting period without breaching time-limit rules.
Action point:
Work with your tax adviser to review your credit attribution process and ensure it matches the ATO’s revised guidance once the Bill becomes law.
4. When the Changes Take Effect
Once legislated, these amendments will commence on the first day of the first quarter after the Bill receives Royal Assent.
Businesses should begin preparing now so that systems and processes are compliant well before the new rules apply.
How Boa & Co. Chartered Accountants Can Help
At Boa & Co., we help Sydney businesses navigate complex tax updates with confidence. Our services include:
- Reviewing GST and BAS compliance frameworks
- Identifying eligible GST-free activities and input credits
- Updating accounting systems to reflect legislative changes
- Advising on cash-flow and timing strategies for GST and fuel tax credits
Our goal is to make tax compliance seamless so your business can stay focused on growth.
The Bottom Line
While these GST amendments may seem technical, they carry real implications for Sydney businesses — especially those in the disability, logistics, and energy sectors.
Proactive planning and accurate reporting will help avoid ATO scrutiny and ensure your business remains compliant.
📩 Contact Boa & Co. Chartered Accountants today to learn how we can help you adapt to the latest GST changes:
📞 1300 952 286
📧 [email protected]
🌐 www.boanco.com.au