ATO Implements Monthly GST Reporting for Non-Compliant Businesses

In a bid to improve tax compliance, the Australian Taxation Office (ATO) has announced that around 3,500 small businesses with a history of non-payment, late lodgement, or incorrect reporting will be required to shift from quarterly to monthly GST reporting starting 1 April 2025. This change, which will remain in place for at least 12 months, is part of the ATO's broader efforts to ensure small businesses meet their tax obligations in a more timely and structured manner.

The ATO’s Deputy Commissioner, Will Day, emphasised that the switch to monthly reporting is aimed at reducing the risk of businesses falling behind on their GST obligations. He stated that monthly reporting will allow businesses to address past unmet tax responsibilities in a way that keeps them on track.

Small businesses who believe their compliance history does not warrant the switch can request a review of their GST reporting cycle. Please reach out to our office if your business is impacted by this and we will assist however we can.

It is clear that the ATO are increasing their focus on businesses that are not meeting their obligations.  More than ever, it is important to ensure your business is up to date with all tax lodgements so as to not attract the attention of the ATO and potentially expose the business to more onerous reporting obligations.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.