Correcting Activity statements

Written by: The institute of Certified Bookkeepers

Correcting Activity Statements

Correcting is not making an adjustment!

Correcting an error or mistake is about fixing an amount that was incorrect when lodged, typically due to transposition error, misclassification or double counting.

Adjustments are to items that were correct at the time but where something has changed the GST.

When and How to “Fix”

Fix on the next BAS when:

  • An adjustment occurs due to another transaction (returned goods, price change, etc.)
  • A credit error (you previously overpaid) – must be within 4 years and 1 day from the date the original BAS was lodged
  • A debit error (you underpaid) – for business with turnover less than $20m,and where the aggregated amounts of all adjustments is less than $10,000, they have 18 months from the due date of the original Activity Statement; for others 12 months. For companies with more than $20m turnover, the aggregated value of adjustments must be considered on a scale starting at $20,000.

You have to go back and revise the lodged BAS if:

  • The time limits have expired, or value limits above are exceeded
  • There is a 4 year limit on payment of refunds
  • The revision of past statements is required so that appropriate interest would be calculated and then paid as a result of underpayments.

Lodging the Revision

Using the Online Services for Agents, select the “Revise” link when reviewing the list of lodgement “History”.

*Lodgement software may also allow the lodgement of adjustments.

Please speak to us if your Activity Statements need adjustments

Previous Articles

If you enjoyed this article and would like to see others, then click on the link below.

Accountability BAS and Bookkeeping Services provide professional bookkeeping and BAS services to businesses in most Australian states.

What our clients say about us…

“I had the pleasure of being introduced to ABBS through Jo Bacon the WA representative. The professional service.  I have received has been so essential in assisting me with my new business, I am so grateful for the expertise, professionalism and excellent customer service I have experienced.” Marion B

“Thanks to Steve Cocks from ABBS we managed to get all the books up to date and in no time, … and that took the weight off my shoulders so I could focus on developing my business and moving forward in a more organized and structured way, keeping on top of things every month which makes life much easier.”  Elisabeth G

“As an ex-bookkeeper, I’m pretty fussy about how I like things done and I’ve found Caran from ABBS to be a pleasure to work with. She’s competent and efficient and now that I have her helping me with the bookkeeping for my business, I wouldn’t be without her.”  Sandy T

    “As a sole director of a regional law firm,  I’m very conscious of the need to have the proper business support, particularly in the areas of bookkeeping and trust accounting. Since I outsourced those components of my business to ABBS, I feel as if these vital components of my business are in expert hands and I can relax knowing that it is all being done properly , efficiently and legally.  Rob’s expertise with running a business including his insight with managing employees, his ready availability for a discussion at any time on any business matter, his advice and support, have been absolutely invaluable to CastleGate Law.  In addition, Janice from ABBS looks after my trust accounting through Leap with equal efficiency and expertise – she and Rob make a great team for any law firm.  Not only do I feel like I’m sharing the considerable burden of running a law firm, but I feel like in Rob I have someone on my side as a business owner, because of his implicit understanding of business matters, his encouragement and support. For all these reasons I cannot recommend ABBS highly enough as additions to any law firm or business partner. ”  Kate R