ATO Moves Some Small Businesses to Monthly GST Reporting
As a small business owner, staying on top of your tax obligations is crucial. The Australian Taxation Office (ATO) has recently announced a change affecting around 3,500 small businesses, shifting them from quarterly to monthly GST reporting from 1 April 2025.
Why the Change?
This change is part of the ATO’s “Getting it right” campaign, which aims to support better compliance.
The ATO has identified that small businesses struggling with:
- Late or non-payment of GST
- Late lodgment of BAS
- Incorrect tax reporting
may benefit from monthly GST reporting. According to the ATO, businesses that report and pay GST monthly are generally better at managing cash flow and meeting their obligations. Smaller, more frequent payments can help prevent businesses from falling behind.
Monthly reporting can also align more closely with existing accounting processes, giving businesses more up-to-date information to guide financial decisions.
What Does This Mean for You?
If your business is selected, the ATO will notify both you and your tax professional directly. From 1 April 2025, you’ll be required to lodge and pay your GST monthly. This arrangement will stay in place for at least 12 months, giving you time to develop strong reporting habits and improve compliance.
Monthly BAS due dates will fall on the 21st of the month following the end of the taxable period. For example, your July BAS will be due by 21 August.
After the initial 12-month period, you may request to return to quarterly reporting—provided your business has maintained good compliance throughout.
What If You Disagree?
If you receive a notification but believe your business has a strong compliance history, you can lodge an objection with the ATO. You’ll need to explain why you think the decision is incorrect, and the ATO will review your case.
Want to Switch Voluntarily?
Even if your business isn’t required to make the switch, you might want to consider moving to monthly reporting voluntarily.
- Sole traders can call the ATO or apply in writing.
- Other businesses can request the change via Online services for business or through their registered tax or BAS agent using Online services for agents.
Need Help?
If you’re having trouble meeting your tax obligations, don’t wait—reach out early. Contact your registered tax professional, a business adviser, or the ATO for assistance.
For expert advice and assistance in dealing with your Business Goods and Services Tax in Australia, please contact Mathews Tax Lawyers on 1800 685 829
Disclaimer: The information on this page is for general information purposes only and is not specific to any particular person or situation. There are many factors that may affect your particular circumstances. We advise that you contact Mathews Tax Lawyers before making any decisions.