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.
SMART Business Solutions is proud to announce its recognition as the winner of Excellence in Local Community Connection (Medium–Large Business) and Excellence in Access and Inclusion at the 2025 Mornington Peninsula Business Excellence Awards.
It might seem like a clever strategy - moving surplus business cash into your personal mortgage offset account to save on home loan interest, then shifting it back to the company around tax time. But there’s a catch: the ATO sees this, and they’re not fans.
