Small businesses with a history of non-compliance may be required to transition to monthly GST reporting starting in April, as part of an initiative by the Australian Taxation Office (ATO).
The ATO has announced it is actively monitoring small businesses that may need to shift from quarterly to monthly GST reporting to ensure they meet their tax obligations. Businesses with a record of non-compliance, such as missing payments, late BAS lodgements, or incorrect GST reporting, could be affected by this change.
Businesses identified for mandatory monthly reporting will receive written notification from the ATO. The transition is intended to help businesses maintain better compliance, align reporting with reconciliation processes, and improve overall financial management.
Many small businesses have already voluntarily adopted monthly GST reporting, which has contributed to improved cash flow and more up-to-date record-keeping. Monthly reporting is also seen as beneficial for aligning tax obligations with other regular business processes, enhancing cash flow management, and supporting more informed financial decisions.
By making smaller, more manageable payments throughout the year, businesses may find it easier to meet their tax obligations while also gaining better oversight of their financial performance.
If you receive notification from the ATO regarding changes to your GST reporting, and you are unsure on what to do next, please get in touch.
On 31 March, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.
If you’re a director of a small business, Payday Super isn’t just an HR or payroll issue. It’s a governance issue that could directly affect your personal legal exposure.
