🇦🇺Australia

ATO GST Reporting Penalties for NGL Fractionation

1 verified sources

Definition

Complex NGL fractionation accounting under GST for mixed taxable/non-taxable supplies causes frequent BAS errors, triggering ATO penalties for late or incorrect lodgements.

Key Findings

  • Financial Impact: AUD 545 base penalty per late BAS + 5% p.a. GIC; typical AUD 5,000-20,000/year for SMEs with manual processes
  • Frequency: Quarterly BAS lodgements
  • Root Cause: Manual tracking of NGL volumes, ethane/LPG classifications, and input tax credits in fractionation

Why This Matters

The Pitch: Natural Gas Extraction players in Australia 🇦🇺 waste AUD 20,000+ annually on BAS penalties and rework. Automation of NGL fractionation accounting eliminates this risk.

Affected Stakeholders

Accountants, Gas Plant Managers, Finance Controllers

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Superannuation Guarantee Shortfalls in Gas Processing Payroll

200% SG Charge on shortfalls (11.5% rate); e.g., AUD 11,500 SG on AUD 100,000 payroll x 200% = AUD 23,000 penalty

Delayed GST Input Tax Credits on NGL Processing Imports

AUD 10% GST on AUD 5M inputs = AUD 500,000 ITC delayed 1-2 quarters (AUD 25,000+ interest equivalent)

Fair Work Penalties for Fractionation Shift Underpayments

AUD 66,600 max per breach x multiple breaches; typical AUD 10,000-50,000 per audit

Environmental Protection Licence Non-Compliance Fines

AUD 50,000+ fines per breach (typical range for EP Act violations); 20-40 hours/month manual monitoring

NOPSEMA Environment Plan Approval Delays

AUD 100,000+ per month idle rig costs (industry standard for approval delays)

EIS and Site-Specific EA Application Costs

AUD 500,000+ per EIS application (typical for large gas fields); 6-12 months preparation time

Request Deep Analysis

🇦🇺 Be first to access this market's intelligence