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ARTICLE · 30 OCTOBER 2025

Time Limits On Claiming Input Tax Credits: Punitive Outcomes For Taxpayers

GGI | Global Alliance
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The Australian Taxation Office (ATO) has released a tax ruling on Division 93 of A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act), which imposes time limits on taxpayers...

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Jonathan Ackerman (Kelly Partners Chartered Accountants)
Jonathan Ackerman (Kelly Partners Chartered Accountants)
Tony Nunes (Kelly Partners Chartered Accountants)
Tony Nunes (Kelly Partners Chartered Accountants)
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The Australian Taxation Office (ATO) has released a tax ruling on Division 93 of A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act), which imposes time limits on taxpayers claiming input tax credits (ITCs) for their purchases in their GST return ­– Business Activity Statement (BAS).

A taxpayer can amend its BAS only during the four-year "period of review", which starts when a BAS is lodged and ends four years later (BAS review period), noting various exceptions exist. Division 93 imposes a separate four-year time limit on claiming ITCs.

A taxpayer's entitlement to an ITC ceases four years after the lodgement due date of the BAS for the relevant tax period (the four-year ITC period). Once this period has passed, the taxpayer is no longer entitled to claim the ITC in respect of the purchase.

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