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Small businesses with a history of not complying with their obligations may be moved to monthly GST reporting from the start of April, the ATO has warned.
ATO to push non-compliant businesses to monthly GST reporting
26 February 2025
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7 minute read
In a recent update, the ATO has said it is currently monitoring small businesses that may need to change from quarterly to monthly GST reporting to stay on track.
"If you operate a small business, from 1 April 2025, we may move you from quarterly to monthly GST reporting if you have a history of not complying with your obligations," the ATO said.
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This includes non-compliance such as missing payments, lodging a BAS late or incorrectly reporting GST.
The ATO said that any small businesses that are moved to monthly GST reporting will be notified in writing.
"The move is designed to support you to meet your obligations and to embed good business habits into your business by better aligning reporting with your reconciliation processes. This will help make reporting easier and save you time," the Tax Office said.
The ATO noted that many small businesses had already voluntarily moved to monthly GST reporting.
"This has helped them improve their cash flow and keep their record keeping up to date," it said.
"Generally, small businesses that report their GST monthly find that monthly reporting aligns better with other natural business processes [and that] cashflow management improves, which helps them make more informed business decisions."
Making smaller, more management payments also helps businesses to meet their tax obligations, the ATO said.
"Monthly reporting may make it easier for you to track your finances and business performance and make more informed decisions each month," it said.
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