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
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As part of its re-election commitment, the Federal Government has passed legislation to reduce all outstanding HECS-HELP debts by 20%. The Bill passed the Senate on 31 July 2025 and will come into effect once it receives Royal Assent. The reduction will be applied retrospectively to student loan balances held as at 1 June 2025. While many borrowers have recently seen their loan balances increase due to the 3.2% annual indexation, the Government has confirmed that the 20% discount will be calculated based on the loan amount before indexation was applied. How the Reduction Will Work: Once the legislation is in effect, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to eligible student loan accounts. Indexation will also be recalculated using the reduced loan balance, delivering further relief for borrowers. This change builds on previous reforms that now link indexation to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), rather than CPI alone, an approach designed to ease the financial pressure on graduates. Lodging Your Tax Return: If you’re getting ready to lodge your tax return, you don’t need to delay. The ATO will automatically apply the discount in the coming months. If you’ve fully repaid your student loan since 1 June 2025, you may be eligible for a refund equivalent to the 20% discount (subject to any other outstanding tax liabilities). Other Changes to Student Loan Repayments: The legislation also introduces changes to repayment thresholds. From 1 July 2025, the minimum income threshold for compulsory student loan repayments will increase from $54,435 to $67,000, making repayments more equitable. If you have any questions about how these changes may affect you or your tax return, please get in touch with CoggerGurry today, we’re here to help. Tel: 03 5571 0111
Parliament has resumed, and we are watching closely for the introduction of the Division 296 tax Bill to the lower house. While the Government is managing a number of priorities, the extra time provides us with the opportunity to continue planning with clients who may be affected and to ensure we are ready when the legislation is finalised. Although no update has been given on whether the 1 July 2025 start date will be deferred, we’ll keep you informed as soon as there is more clarity. In the meantime, rest assured that we are monitoring developments carefully and will provide guidance and advice as soon as the position becomes clearer.
