ATO GST Reporting Update

ATO GST Reporting Update: Monthly Reporting for Non-Compliant Businesses

The Australian Taxation Office (ATO) has announced that, starting from 1 April 2025, approximately 3,500 small businesses with a history of non-compliance will be transitioned from quarterly to monthly GST reporting.

Is my business affected?

If your business is affected, the ATO will notify you directly.The ATO has identified the following indicators of a history of non-compliance:

Late Payments: Frequently making late GST payments.
Non-Lodgment: Failing to lodge GST returns on time.
Incorrect Reporting: Regularly submitting inaccurate GST information.

Why Is the ATO Making This Change?

The ATO have stated the following reasons for making the change:

Late Payments: Frequently making late GST payments.
Non-Lodgment: Failing to lodge GST returns on time.
Enhancing Compliance: Monthly reporting aims to help businesses stay on top of their tax obligations, reducing instances of late payments, non-lodgment, and incorrect reporting.
Improved Cash Flow Management: Monthly reporting can help businesses manage their cash flow more effectively, as tax payments will be smaller and spread out over time.
Encouraging Good Business Practices: By aligning tax reporting with regular business processes, monthly reporting helps reduce errors and makes tax time less stressful.
Support for Businesses: The ATO believes that more frequent reporting will help businesses maintain accurate, up-to-date records, leading to better decision-making.

What can I do to avoid this?

We recommend lodging any overdue business activity statements (BAS) and settling all outstanding BAS liabilities before 1 April 2025.

A review process is available for small businesses who don’t believe they have a history of poor compliance and should be able to remain on their current GST reporting cycle.
If you believe your business may be affected or have any questions, please don’t hesitate to contact us on +61 7 3666 0091 to discuss your situation.