ATO to push non-compliant businesses to monthly GST reporting
Small businesses with a history of not complying with their obligations may be moved to monthly GST reporting from the start of April, the ATO has warned.
.
In a recent update, the ATO has said it is currently monitoring small businesses that may need to change from quarterly to monthly GST reporting to stay on track.
"If you operate a small business, from 1 April 2025, we may move you from quarterly to monthly GST reporting if you have a history of not complying with your obligations," the ATO said.
This includes non-compliance such as missing payments, lodging a BAS late or incorrectly reporting GST.
The ATO said that any small businesses that are moved to monthly GST reporting will be notified in writing.
"The move is designed to support you to meet your obligations and to embed good business habits into your business by better aligning reporting with your reconciliation processes. This will help make reporting easier and save you time," the Tax Office said.
The ATO noted that many small businesses had already voluntarily moved to monthly GST reporting.
"This has helped them improve their cash flow and keep their record keeping up to date," it said.
"Generally, small businesses that report their GST monthly find that monthly reporting aligns better with other natural business processes [and that] cashflow management improves, which helps them make more informed business decisions."
Making smaller, more management payments also helps businesses to meet their tax obligations, the ATO said.
"Monthly reporting may make it easier for you to track your finances and business performance and make more informed decisions each month," it said.
Miranda Brownlee
26 February 2025
accountantsdaily.com.au
Hot Issues
- Bribery, brothels, breaches of confidence: ATO officer loses appeal against imprisonment
- Why Culture Matters (Even in Small Teams)
- How to detect and prevent elder abuse when advising older clients: RSM
- Div 296 must be considered ‘holistically’, IPA says
- Working out your Work From Home (WFH) expenses – 2025 Rules
- Accrued leave: take a holiday or take the payment?
- Franchising and Leasing: Legal Issues to Consider When Securing a Location
- Airplane Fuel Consumption Per Minute
- ‘Results in paying more tax’: ATO warns Australians against early super access
- Employee or Contractor ?
- Inherited assets: what you need to know about pre-CGT v post-CGT investments
- WHS and OHS Regulatory Update: August 2025
- HECS/HELP debt reduction Bill introduced
- Non deductibility of ATO interest charges for businesses
- How safe is your business from scams
- The biggest earthquakes in history : (1905–2025)
- What Terms Should I Include in a Capital Raising Term Sheet?
- Prepare for Div 296 now, accountants warn
- ATO, lawmakers demand urgent action as GST fraud skyrockets
- 5 things smart businesses do to stop copycats
- Do not trust myGov messages
- Regulations have changed for buy now pay later services
- Australian Taxation Office (ATO) warns about misinformation on super changes circulating online
- The rise and fall of the world’s largest economies | GDP Epic Battle (1560–2025)
- ATO hit list 2025 – Key Areas Under Review
- Why Succession Planning Matters for Privately Owned and Wealth Groups in Australia
- Benefits of a business plan
- Roles and Responsibilities in a Business Partnership