As the 2026 financial year gains momentum, now is the time for Australian business owners to review their Business Activity Statements and ensure they are not missing out on valuable GST credits and fuel tax credits.

With ongoing cost pressures, cashflow constraints and increased compliance scrutiny, leading commentary in the Australian Financial Review continues to highlight the importance of disciplined financial management and working capital optimisation. One of the simplest ways to improve business cashflow is to claim every credit you are legally entitled to, on time and correctly.

Understanding GST Credits: Claim What You’re Entitled To

What Are GST Credits?

GST credits, also known as input tax credits, are the GST amounts you have paid on business purchases that you can claim back through your Business Activity Statement.

If you purchase goods or services for your business and the price includes GST, you can generally claim that GST amount as a credit to reduce the amount you owe to the Australian Taxation Office.

For many businesses, these credits represent a significant and ongoing cashflow benefit.

Who Can Claim GST Credits?

To claim GST credits, you must:

• Be registered for GST
• Purchase goods or services for business use
• Have been charged GST by the supplier
• Hold a valid tax invoice for purchases over $82.50 including GST

You cannot claim GST credits for personal expenses or purchases that are not directly related to running your business.

The Four-Year Time Limit: Don’t Let Credits Expire

A critical but often overlooked rule is the four-year time limit. GST credits expire four years after the due date of the BAS for the period in which you first could have claimed them. Once that window closes, the entitlement is lost. Reviewing historical BAS lodgements within the four-year window is a practical way to strengthen cashflow without increasing revenue. A structured review of prior periods can uncover missed credits and correct underclaims.

Fuel Tax Credits: A Powerful but Underused Benefit

What Are Fuel Tax Credits?

Fuel tax credits allow eligible businesses to claim back the fuel tax (excise) included in the price of fuel used in business activities.

If your business uses fuel in eligible vehicles, machinery or equipment, you may be able to claim credits on your BAS.

This can be particularly valuable for:

• Construction businesses
• Transport operators
• Primary producers
• Mining and heavy industry businesses
• Businesses using generators or heavy equipment

Eligibility and Registration Requirements

To claim fuel tax credits, you must:

• Be registered for GST
• Register specifically for fuel tax credits
• Use eligible fuel for eligible business activities

Not all fuel use qualifies.

For example:

• Fuel used in passenger vehicles or light vehicles travelling on public roads is generally not eligible due to the road user charge.
• Heavy vehicles and off-road machinery may qualify at different indexed rates.

Fuel tax credit rates are indexed twice a year and vary depending on the type of fuel and activity. Given the complexity, professional advice is often critical to ensure correct calculation and compliance.

The Four-Year Rule Also Applies

Like GST credits, fuel tax credits are also subject to a four-year time limit from the BAS due date for the period when the credit could first have been claimed.Failing to review eligibility within this timeframe can result in permanently lost refunds.

BAS Accuracy and Cashflow Strategy in 2026

Recent business coverage in the Australian Financial Review has focused heavily on working capital management, rising operating costs and the importance of strong governance practices. Accurate BAS preparation is a core part of that governance.

Your BAS is not simply a compliance form. It is a financial checkpoint that reflects:

• GST collected
• GST paid
• PAYG withholding
• PAYG instalments
• Fuel tax credits

Treating BAS lodgement as a strategic cashflow review rather than a last-minute compliance task can materially improve financial outcomes.

Should You Amend a Past BAS or Claim Now?

If you identify missed GST or fuel tax credits, you may be able to:

• Correct the error in a later BAS, subject to correction limits
• Lodge an amendment for the original BAS period

The appropriate approach depends on the size of the adjustment and ATO correction thresholds.

A registered tax agent can assess:

• Whether your fuel use qualifies
• Which credit rates apply
• Whether amendments are required
• How to minimise compliance risk

Start the Year Right: Review Before It’s Too Late

Do not leave BAS reviews or credit assessments until deadlines are looming.

By proactively reviewing:

• Historical GST credits
• Fuel tax credit eligibility
• Tax invoices and documentation
• Prior BAS lodgements within the four-year window

You may unlock cashflow that is already sitting within your business records.In a tighter economic environment, optimising entitlements can be just as valuable as increasing revenue.

Conclusion: Protect Your Cashflow and Stay Compliant

As 2026 unfolds, disciplined BAS management is more important than ever. GST credits and fuel tax credits are legitimate entitlements designed to support Australian businesses, but they come with strict eligibility rules and time limits.

By reviewing your position early, ensuring documentation is in order and seeking professional advice where necessary, you can strengthen cashflow, reduce compliance risk and avoid leaving money with the ATO that rightfully belongs to your business.

A proactive BAS strategy is not just about compliance. It is about smart financial management.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

If you’ve ever felt overwhelmed by your financial records, you’re not alone. Many small business owners encounter common bookkeeping mistakes that can disrupt operations and hinder growth. Here are some prevalent mistakes and effective strategies to avoid them.

1. Chasing Down Late Payments: Staying on Top of Debtors

Unpaid invoices can severely impact your cash flow, making it difficult to cover expenses. Late-paying clients often leave you scrambling, which can distract you from growing your business.

Solution: Set clear payment terms and issue invoices promptly. Use automated reminders in your accounting software to follow up on overdue payments. For example, if you offer services and your client’s payment is overdue by two weeks, automate a friendly reminder to be sent every week until payment is made. Additionally, consider offering early payment incentives or setting up payment plans for clients who consistently pay late.

2. Blurring the Lines: Mixing Business and Personal Finances

Mixing personal and business expenses can create a chaotic financial picture. This often happens when business owners use personal accounts for business transactions, complicating tax time and compliance.

Solution: Establish a separate bank account for your business. For instance, if you own a café, use this account solely for business-related transactions. This separation simplifies expense tracking and ensures your financial records remain clear, making it easier for your bookkeeper to manage your accounts.

3. BAS and GST Stress: Staying on Top of Compliance

The burden of quarterly BAS lodgments and managing GST obligations can be overwhelming. Missing deadlines or making filing errors can lead to costly penalties.

Solution: Set calendar reminders for BAS due dates and ensure your bookkeeping software tracks GST on all relevant transactions. For example, if your café sells meals, keep meticulous records of GST collected and expenses related to GST. Regularly reviewing your GST codes and transactions will help you avoid mistakes.

4. Falling Behind on Bank Reconciliations: Don’t Let It Pile Up

Procrastinating on bank reconciliations can lead to discrepancies and missed expenses. This task, if left unattended, can pile up and create significant stress.

Solution: Schedule a weekly reconciliation session. For instance, every Friday afternoon, dedicate 30 minutes to reconciling your bank statements. This routine helps you identify discrepancies early and maintain accurate cash flow statements.

5. Manual Data Entry: Automate Where Possible

Relying on manual data entry can be tedious and error-prone, detracting from your productivity.

Solution: Use cloud-based bookkeeping software like Xero or MYOB to automate tasks. For example, if you regularly receive invoices from suppliers, tools like Hubdoc can automatically capture and sort these receipts, saving you time and reducing errors.

6. Cash Flow Issues: Focus on Cash Flow, Not Just Profit

A profitable business can still struggle with cash flow if you overlook inflows and outflows.

Solution: Regularly review your cash flow statements. Create forecasts using your software to understand cash flow trends. For instance, if you notice a dip in cash flow during a particular season, you can plan ahead to ensure you have enough funds to cover expenses.

7. Missed Deductions: Understand What’s Claimable

Many business owners are unaware of the deductions they can claim, leading to higher tax bills.

Solution: Keep detailed records of all business-related expenses. Work with a bookkeeper or accountant to identify deductible expenses specific to your industry. For example, if you operate a home office, you might be eligible to claim a portion of your utility bills as a business expense.

8. Knowing When to Seek Professional Help

Handling your bookkeeping might work at the start, but as your business grows, the complexity increases.

Solution: Consider enlisting professional bookkeeping services. For instance, a skilled bookkeeper can help you not only manage your books but also provide insights into your financial health. This support allows you to focus on your core business activities while ensuring compliance and strategic planning.

Conclusion

Avoiding these common bookkeeping mistakes can lead to smoother operations and a more profitable business. By implementing these strategies, you can enhance your financial management and keep your focus on growing your business with confidence. Remember, seeking professional help is often the best investment you can make in your business’s financial future.

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How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

---

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.