GST - Made a Mistake Charging GST?
Cogger Gurry • March 18, 2025
As a small business owner, you understand the importance of getting your GST right. If you have incorrectly charged GST on a sale, don’t panic – there are steps you can take to fix the situation.
The key factor is whether you have passed the GST on to your customer. This means that if you have charged GST and issued a tax invoice, it is considered to have been passed on.
- If you have overcharged GST, the most effective way to recover the excess GST is to reimburse the customer. Once you refund the excess GST, you can then adjust your next BAS to recover this amount.
- If you have not charged GST, the most effective way to recover this is to issue your customer an invoice to pay the extra GST amount or you can remit 1/11 of the original sale amount.
If you did not pass on the GST, you have two options:
- For small businesses (turnover under $20 Million), correct it on a later BAS if the adjustment being made is under $12,500, or if it is over $12,500 revise the original BAS.
- For larger businesses (turnover greater than $20 Million), revise the original BAS.
If you would like assistance, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au
Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break
Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break
The 2025–26 Federal Budget has reinforced the Albanese Government’s commitment to tax compliance, with a major boost in funding to the ATO to strengthen enforcement—including Fringe Benefits Tax (FBT). With that extra funding comes increased ATO scrutiny on employers. If you're responsible for FBT compliance, now’s the time to get your house in order. High-Risk Areas Under the ATO Microscope : 🚗 Car Fringe Benefits Incorrect vehicle classification (especially dual cab utes and SUVs). Invalid or poor-quality logbooks. Incorrectly treating private use (e.g. home to work, errands) as business use. Misuse of the statutory formula method. 🍽️ Meals & Entertainment Misunderstanding what qualifies as deductible vs. entertainment. Inadequate documentation for functions or staff events. Incorrect application of the "otherwise deductible" rule. ⚡ Electric and Plug-in Hybrid Vehicles From 1 April 2025 , PHEVs lose their FBT exemption unless: The car was in use before 1 April 2025, and There is a binding agreement to continue use post-1 April. Many employers are still unaware of these transitional rules. 🚨 What the ATO Is Watching Nil or non-lodged returns where fringe benefits were likely provided. Incorrect treatment of employee contributions . Mismatches between FBT and income tax reporting. Penalties can be up to 75% of the shortfall , so it pays to be proactive. ✅ What You Should Do Review the benefits you've provided in the 2025 FBT year. Reassess logbooks, vehicle use, and entertainment records. Seek advice on grey areas like PHEVs or meal benefits. Lodge and pay on time. 📞 Need help reviewing your FBT exposure before the deadline? Get in touch today—we’re here to help you stay compliant and penalty-free. Read more about this on our website HERE or give us a call on 03) 5571 0111 📅 Key FBT Dates for 2025 FBT year ends : 31 March 2025 Lodgment due (paper) : 21 May 2025 Lodgment due (tax agent) : 25 June 2025 Payment due : 28 May 2025
