If you have made an error or left something out of a business or super tax return, statement, or activity statement, you can amend or fix it. Here are some reasons that you should fix a mistake if you:
- made an error in entering an amount
- forgot to report some income, a deduction, or a gain
- incorrectly claimed deductions or credits or didn’t claim them
- had a change in circumstances related to something you reported after lodging a tax return.
No matter what the reason is, you should correct any mistake as soon as possible. In some circumstances, there are legal time limits to making corrections. If the amendment increases the money you owe, you may incur penalties and interest. The ATO may verify the information you provide before making any adjustments. If they need more information, the ATO will contact either you or your tax agent. How you can request a revision or an amendment to correct a mistake depends on the type of lodgment. You may also have to make a voluntary disclosure. If the ATO has informed you about an audit, you should tell the tax officer conducting the audit about the error.
Time Limits on Business and Super Amendments
There is a time limit for amending your tax return, and the time period between the notice of assessment being issued and this time limit is called the period of review. The time limits to make tax return amendments are:
- for small and medium businesses:
◦ 2 years for the 2023–24 and earlier income years, and
◦ 4 years for the 2024–25 and later income years - 4 years for other taxpayers
Your period of review starts on the day after the ATO sends you the notice of assessment for the income year in question. This is usually taken to be the date on the notice or, if the ATO doesn’t issue a notice, the date the relevant return was filed. You need to submit an amendment early so the ATO can process it within the relevant period of review. You are allowed to submit more than one amendment request within an amendment period.
The time limit is for giving you certainty about your tax matters because it means the ATO cannot amend your tax return once the time limit has passed, unless it is subject to fraud or evasion. If you want to amend a tax return after the time limit has expired, you are not allowed to request an amendment but you are allowed to lodge an objection. You will have to include a request for an extension of time together with the objection.
Correct An Activity Statement
How you correct an error on an activity statement depends on what tax and year your error is related to. You can use your existing activity statement to:
- correct goods and services tax (GST) mistakes
- correct fuel tax credit mistakes
- make claims for previous periods
- vary instalment amounts
If you have made a mistake working out your PAYG instalment, you are allowed to amend or fix it. A 4-year credit time limit applies to claiming refunds and credits. Time limits also apply for different instalment amounts. You need to make corrections:
- on or before the day your instalment is due
- before you file your tax return for the year
The process for making corrections and claims for previous periods depends on the specific credit, tax involved, and time limits. If you are unable to make a correction on your existing activity statement, you can revise the original activity statement. The ATO can also make mistakes processing your activity statement, for instance, it may scan incorrectly or they may make a keying error. You can contact the ATO if you think they have made an error.
Conclusion
Now you know when you are required to fix a mistake or amend a return. To avoid making mistakes on a tax return, you can seek help from Trusted Tax Associates, who specialise in preparing and lodging returns accurately.
