Correct, have a friend who stayed (still is here) for 12 years on work sponsored ARC (first company sponsored, then he opened his restaurant and sponsored hisself). He didn’t apply immediately after the 5 yrs mark, tried to apply in his 9th yr (coz he couldn’t be bothered for some reasons while keeping renewing as usual his ARC) and the NIA said he had to wait another year at least to apply since he “forfeited” his application window.
Waited until the 10th year (he also married in the meantime with a Taiwanese girl), applied and got it without issues.
Never wait on these thing to save 10k, just do it as soon as you are eligible.