The Australian Taxation Office (ATO) recently announced that over 3,500 small businesses will be moved from quarterly to monthly GST reporting, effective April 1, 2025. These businesses have been identified by the ATO to have histories of incorrect reporting, non-lodgement, late payment or non-payment.
This latest measure aims to improve compliance, with the ATO claiming that a more frequent reporting schedule will help these small businesses meet their obligations and maintain viability. For the businesses affected, the changes to reporting cycles will remain in place for a minimum period of 12 months.
This change is the latest in a series of crackdowns on non-compliant businesses, following a period of leniency during the COVID-19 pandemic. The ATO has repeatedly signaled its intention to reinforce compliance, with Deputy Commissioner Will Day making the matter clear in a recent media statement.
“Running a small business is serious business – so it pays to keep on top of your tax obligations, and we know that when GST is reported monthly rather than quarterly, this reduces the risk of falling behind,” he says.
“If you’re a small business who continues to deliberately disregard your obligations, you can expect the ATO to move you to more frequent GST reporting.”
Key takeaways
If your business has had difficulties managing its tax obligations, there is a reasonable probability that these changes will impact you in the near future.
In conjunction with the incoming non-deductibility of debt related fees, the impact of non-compliance has risen sharply in the past financial year.
To maintain business viability and avoid unnecessary cost, it’s important that you consult with financial professionals to improve compliance.
If you have already received notice from the ATO informing you that your reporting cycle will be changed, Optima Partners’ team of experienced tax accountants can help.
