ATO enforces monthly GST reporting for non-compliant small businesses
Approximately 3,500 small businesses with a history of non-compliance with the Australian Taxation Office (ATO) will be moved from quarterly to monthly GST reporting starting 1 April 2025.
By Ro Elvinia
This new measure targets small businesses with a history of non-payment, late or non lodgment or incorrect reporting. The ATO aims to improve compliance and support small businesses in managing their tax obligations by enforcing more frequent reporting. According to the ATO, monthly reporting provides businesses with a structured approach to addressing outstanding tax liabilities and preventing further financial strain. The changes will be mandatory for affected businesses for at least 12 months as part of the ATO’s ongoing ‘Getting it Right’ campaign.
ATO Deputy Commissioner Will Day emphasised the importance of staying on top of tax obligations. He said, “Running a small business is serious business – so it pays to keep on top of your tax obligations, and we know that when GST is reported monthly rather than quarterly, this reduces the risk of falling behind.”
He acknowledged that most small businesses strive to meet their tax requirements and reaffirmed the ATO’s commitment to supporting those who comply while taking firm action against those who deliberately disregard their obligations.
Small businesses and their tax professionals will be notified directly by the ATO when their reporting cycle changes. The agency encourages business owners to seek professional advice from their registered tax professional or business adviser or contact the ATO if they require assistance. Businesses that believe they have been wrongly identified as non-compliant will have the opportunity to request a review.
Many small businesses that have voluntarily switched to monthly reporting have found it beneficial for cash flow management and reconciliation. The ATO’s move aligns with efforts to create a level playing field, ensuring all businesses meet their tax responsibilities fairly.
The ‘Getting it Right’ campaign will also focus on compliance in high-risk industries, such as building and construction, cleaning, couriers, road freight, information technology and security. Additionally, the ATO is monitoring claims related to small business boost measures, including the small business skills and training boost and the technology investment boost.
Reinforcing its commitment to helping small businesses succeed while maintaining compliance across all sectors, the ATO will continue to identify new focus areas each quarter.
Published: 17th March 2025 | Last updated: 17th March 2025