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Identifying Hidden GST Credits in Solar-Offset Electricity Bills for an NDIS Provider

hidden GST credits for ndis
A routine bookkeeping review uncovered unrecorded electricity invoices and potential missed GST credits across multiple NDIS properties, prompting a structured financial review and compliance remediation plan.

Client Snapshot

Industry: NDIS & Disability Services
Geography: Regional Queensland, Australia
Operational Context: Management of multiple NDIS residential properties
Engagement Focus: Bookkeeping oversight, expense accuracy, GST compliance review

During a routine review of bookkeeping records across the organisation’s property portfolio, Befree identified an inconsistency in how certain supplier invoices were being recorded in the accounting system. The issue related to electricity bills associated with properties equipped with rooftop solar systems, where solar feed-in credits often resulted in invoices showing a $0 payable balance. A closer review indicated that these invoices were not always being captured in the financial records, highlighting a potential gap in expense recognition and GST reporting.

The Challenge

The organisation manages electricity accounts for multiple NDIS residential properties through Ergon Energy. Several of these properties have rooftop solar systems installed, meaning solar feed-in credits frequently offset electricity charges and produce invoices showing a $0 payable balance.

During the review, it became evident that invoices with a zero payable amount were not consistently recorded in the accounting system. In one instance, the last recorded electricity bill for a property dated back to March 2024, despite ongoing electricity supply.

Although the invoices showed no amount due, they still contained legitimate financial components, including electricity usage charges, meter service fees, GST components, and solar feed-in credits.

Failure to record these invoices created potential risks, including understated electricity expenses, missed GST input tax credits, incomplete supplier expense history, and possible inaccuracies in BAS reporting. The pattern also suggested that similar treatment could exist across other properties within the portfolio.

Befree’s Approach

To address the issue, Befree proposed a structured review designed to identify missing invoices and ensure accurate financial treatment.

Comprehensive Bill Review

All electricity accounts across the organisation’s properties were identified and billing histories reviewed from March 2024 onwards, extending into prior periods where required. The review focused on identifying invoices showing $0 payable due to solar feed-in credits.

Portal Access and Invoice Retrieval

Access to the Ergon Energy online portal was obtained to download historical invoices directly from the supplier. These invoices were then cross-checked against accounting records to identify missing transactions.

Correct Accounting Treatment

For each $0 payable invoice identified, the correct accounting treatment was applied by recording the gross electricity expense, recognising solar feed-in credits separately, and capturing the associated GST input tax credits within BAS reporting.

Portfolio-Wide Review

To ensure consistency, the review framework was extended across all properties, allowing the team to identify missing expense entries, unclaimed GST credits, and potential BAS adjustment opportunities.

Opportunities Identified

  • The initial review revealed that electricity invoices showing $0 payable had not been recorded for extended periods in certain cases.
  • This indicates that electricity expenses may currently be understated in the financial records and that GST input tax credits embedded within these invoices may not have been fully claimed.
  • Preliminary analysis suggests that a broader review across all electricity accounts could reveal additional GST credits that may be recoverable across multiple BAS periods.

Strengthening Financial Accuracy

By implementing a structured invoice review and reconciliation process, the organisation can strengthen the accuracy of its financial records and ensure electricity expenses and associated GST credits are properly captured.

Importantly, this approach ensures that invoices with a $0 payable balance are not treated as “no transaction”, but recognised as legitimate financial documents with both expense and GST implications.

This engagement demonstrates how proactive bookkeeping and accounting reviews can uncover hidden compliance risks and missed GST credits, particularly for organisations managing multiple properties or solar-offset utility invoices.

Explore how Befree supports NDIS and healthcare organisations with structured finance and accounting solutions.