On 24 March 2010, the Tax Laws Amendment (2009 GST Administration Measures) Bill 2009 was enacted. This Act, which amends the A New Tax System (Goods and Services Tax) Act 1999, Fuel Tax Act 2006 and the Taxation Administration Act 1953, limits the claiming of ITCs and fuel tax credits to within a four-year period.
The ATO has advised that the four-year time limit for claiming ITCs and fuel tax credits expires four years after the due date of the activity statement for that period. The new law applies to activity statements lodged or issued after:
- for ITCs - 7.30am Eastern Standard Time (EST), 12 May 2009
- for fuel tax credits - on or after 1 July 2010.
There are some exceptions. A taxpayer is still able to claim ITCs and fuel tax credits beyond four years if:
- the Commissioner has notified them of an unpaid net amount in relation to a tax period
- the credits relate to liabilities avoided as a result of fraud or evasion
- either they or the Commissioner have provided notice of their entitlement to a credit
- they are contractually obliged to provide an additional payment because their supplier is liable for GST or additional GST and the four-year period has expired.