ATO moves non-compliant small businesses to monthly GST reporting

What does this mean for small businesses?

For businesses that have struggled to stay on top of their GST obligations, this change aims to improve tax compliance and help businesses manage their cash flow better. By moving to monthly reporting, businesses will have the opportunity to address unmet obligations in smaller, more manageable payments.

How will businesses be notified?

The ATO will notify impacted businesses and their tax professionals directly when their reporting cycle changes.

Why monthly reporting?

Switching to monthly GST reporting can improve cash flow management and align better with regular reconciliation processes. Many businesses that have voluntarily switched to monthly reporting have found it easier to manage their obligations with smaller, frequent payments.

Thriday makes BAS lodgment super simple by calculating GST automatically as you earn and spend money through your business.

Support for struggling small businesses

If you’re finding it tough to meet your tax obligations, the ATO recommends acting early. Whether it’s seeking advice from a registered tax professional, a business adviser, or the ATO itself, getting help sooner rather than later can make a big difference.

ATO Deputy Commissioner Will Day comments:

• "When GST is reported monthly rather than quarterly, this reduces the risk of falling behind."
• "We know most small businesses try to do the right thing, and our goal is to help owners stay on top of their obligations by providing transparency around our focus areas."
• "If you continue to deliberately disregard your obligations, you can expect the ATO to move you to more frequent GST reporting."

Part of the ATO's 'Getting it Right' campaign

The ATO’s 'Getting it Right' campaign focuses on supporting small businesses to stay compliant. This quarter, the ATO is paying particular attention to:

• Contractors in industries such as construction, cleaning, courier services, IT, and security who may be omitting income.
• Ensuring businesses correctly apply for the small business skills and training boost, as well as the small business technology investment boost.

What if you disagree with the change?

If your business doesn’t believe it has a history of poor compliance, you can request a review of your reporting cycle change. Details about the review process, including objection rights, will be provided by the ATO when they notify you.

For more information on how to manage your GST reporting, visit the ATO website or speak to your registered tax professional.