ATO Introduces Monthly GST Reporting for Small Businesses

Deputy Commission Will Day (pictured) of The Australian Taxation Office (ATO) has announced a significant change in GST reporting for small businesses. Starting April 1, 2025, approximately 3,500 small businesses with a history of non-payment, late lodgment, or incorrect reporting will be transitioned from quarterly to monthly GST reporting. This move is part of the ATO's 'Getting it right' campaign, aimed at improving compliance and fostering good business habits.

Benefits of Monthly Reporting

Switching to a monthly cycle can help small businesses manage their tax obligations more effectively. It allows them to address past unmet obligations in a structured way and prevents further accumulation of debt. Many businesses that have voluntarily adopted monthly reporting have found it easier to manage cash flow and meet obligations with smaller, more manageable payments.

Support and Compliance

The ATO will notify affected businesses and their tax professionals about the change. Small businesses struggling with tax obligations are encouraged to seek help early from tax professionals or the ATO. The ATO is committed to supporting compliant businesses while addressing deliberate non-compliance to ensure fair competition.

Additional Focus Areas

This quarter, the ATO is also focusing on compliance issues such as income omissions by contractors in specific industries and adherence to small business boost measures. A review process is available for businesses that believe they should not be subject to the change. The ATO will continue to update focus areas quarterly to ensure equal opportunities for all small businesses.

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