The Australian Taxation Office (ATO) recently announced to transition over 3,500 small businesses from quarterly to monthly GST reporting, effective from 1 April 2025. These businesses were selected due to past issues such as inaccurate reporting, failure to lodge returns, late payments, or non-payment of GST.

This latest measure aims to boost compliance, stating that more frequent GST reporting will help small businesses stay on top of their obligations and remain financially sustainable. For those affected, the revised reporting cycle will apply for at least 12 months.

This update marks the latest step in the ATO’s crackdown on non-compliant businesses, following a more lenient approach during the COVID-19 pandemic. The ATO has consistently emphasised its renewed focus on enforcement, with Deputy Commissioner Will Day recently reaffirming this commitment in a public statement.

“Running a small business comes with serious responsibilities, especially when it comes to meeting your tax obligations. Reporting GST monthly rather than quarterly helps businesses stay on track and avoid falling behind,” he explains.

“The ATO will take action against small businesses that deliberately ignore their GST obligations, including moving them to more frequent reporting.”

Key Takeaways

If your business has struggled to stay on top of tax obligations, it’s likely these upcoming GST reporting changes will affect you soon.

Combined with the new rules around the non-deductibility of debt-related fees, the consequences of non-compliance have significantly increased over the past financial year.

To safeguard your business and avoid unnecessary expenses, it’s crucial to seek professional financial advice and strengthen your compliance processes.

Already received an ATO notice about changes to your reporting cycle? The experienced tax accountants at Allied Business Accountants are ready to support you through the transition and ensure you’re fully compliant.