Small businesses with a habit of falling behind on their GST obligations are about to face stricter reporting rules. From 1 April 2025, the Australian Taxation Office (ATO) will switch around 3,500 small businesses from quarterly to monthly GST reporting, targeting those with a history of non-payment, late lodgement, or incorrect reporting.

The ATO says the move is designed to help small businesses stay on top of their tax responsibilities and prevent them from slipping further into debt. Monthly reporting means smaller, more regular payments that can be easier to manage – and may even improve cash flow.

Why is the ATO making this change?

The new rule is part of the ATO’s ongoing ‘Getting it right’ campaign, which aims to improve compliance, encourage good business habits, and level the playing field. “We know that when GST is reported monthly rather than quarterly, this reduces the risk of falling behind,” says ATO Deputy Commissioner Will Day. “Our goal is to help small business owners get their tax and super obligations right by providing transparency on the areas we’re focused on.” The ATO says most small businesses do the right thing, but those who continually disregard their obligations should expect firmer action.

How will I know if I’m affected?

The ATO will contact small businesses and their tax professionals directly if their GST reporting cycle is being changed. Businesses moved to monthly reporting will need to stick with the new cycle for at least 12 months. There is a review process available if you believe you’ve been wrongly included and have a strong history of compliance.

What else is the ATO watching?

The tax office has also put small businesses on notice in several industries this quarter, including:

• Building and construction
• Cleaning
• Courier and road freight
• IT services
• Security, investigation, or surveillance

In particular, the ATO is looking out for businesses omitting income, as well as checking compliance with the small business skills and training boost and the small business technology investment boost.

Don’t bury your head in the sand

The ATO is urging small businesses who are struggling with tax debt to take action early – whether that’s by getting help from a registered tax professional, a business adviser, or the ATO itself. “Running a small business is serious business,” Day says. “And it pays to keep on top of your tax obligations.”

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