Correcting mistakes on an Activity Statement¶

Everyone makes mistakes on an Activity Statement from time to time. Maybe a sale was missed, an amount was typed wrong, or an expense was left out. The good news is that a mistake found after you have lodged is almost always fixable.

You do not need to panic and you do not need to start again from scratch. The Australian Taxation Office (ATO) has two clear ways to fix an error, and this lesson explains them at a high level.

In one line

A mistake found after lodging is almost always fixable — you can usually correct it on a later Activity Statement within the ATO's limits, or revise the original.

Why this matters¶

Worrying about a mistake can stop people from lodging at all, which only makes things worse. Knowing that errors are normal and fixable takes the fear out of it. It is always better to fix a mistake than to leave it and hope no one notices.

What you will learn¶

That a mistake found after lodging can usually be fixed
The two main ways to fix an error
Why it is better to fix a mistake than to leave it

Understanding the concept¶

There are two main ways to fix an error, and which one you use depends on the mistake.

Fix it on a later Activity Statement. For many common errors, the ATO lets you adjust the figures on your next statement instead of going back to the old one. This is the simpler path. The ATO sets limits on which errors can be fixed this way — for example, there are limits based on the size of the error and your business turnover — so it is not available for every mistake.

Revise the original statement. If a mistake cannot be fixed on a later statement, you can go back and revise the statement you already lodged. A revision replaces the figures on the original statement with the corrected ones. The ATO gives you a set number of years to make a revision.

The full detail of which method to use, and the exact limits, is covered in a later corrections module. For now, the key point is that both paths exist and a mistake can almost always be put right.

For accountants & bookkeepers

The ATO frames post-lodgment corrections around two categories. A credit error means too much was reported or paid, and a debit error means too little. Credit errors are not subject to a value limit, while the net sum of debit errors can be corrected on a later statement only up to a value limit tied to current GST turnover; anything above that limit is handled by revising the period the error was made in. Revisions carry their own time limit. The corrections module sets out the specifics, which change over time.

Example¶

Priya runs a small cafe and lodges her Activity Statement each quarter. A month after lodging, she notices she forgot to include one supplier invoice, so her purchases — and the GST she can claim back — were understated.

Priya does not need to worry. Because the error is small and within the ATO's limits, she can simply include the missing amount on her next quarterly statement. If the mistake had been too large to fix that way, she could instead revise the original statement to add the missing invoice. Either way, the books end up correct.

Common mistakes¶

Ignoring an error and hoping it will not matter — it is better to fix it.
Assuming every mistake has to be fixed by revising the original — many can be fixed on the next statement instead.
Trying to work out the exact limits from memory — they change, so check the corrections module or the ATO before you act.
Not keeping a note of what was changed and why.

How this works in myaccountant¶

In the app — myaccountant keeps your records reconciled as you go, so many errors are caught before you lodge. If you do find a mistake after lodging, the app lets you correct the figures and re-lodge, or revise the statement you already sent to the ATO, so you can put it right without starting over.

Key points¶

A mistake found after lodging is almost always fixable.
You can often correct an error on a later Activity Statement, within the ATO's limits.
If not, you can revise the original statement to replace the figures.
The ATO sets the limits on which errors can be fixed on a later statement.
It is better to fix a mistake than to leave it.
A later corrections module covers the detail and the exact limits.

Learn next¶

General information only — not tax, super or financial advice.

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