The Australian Taxation Office (ATO) has reminded businesses to review their GST turnover thresholds, warning that those who have not updated their reporting and accounting methods may be automatically transitioned to the correct GST obligations from 1 July 2026.
The Australian Taxation Office (ATO) has issued a notice on 7 April 2026, reminding businesses to review their GST turnover to ensure they are applying the correct GST reporting and accounting methods.
The notice reported that some businesses haven’t updated their GST reporting and accounting methods after exceeding the relevant thresholds.
If a business has a GST turnover of:
- AUD 10 million or more, it needs to:
- use full BAS reporting instead of a simpler BAS
- account for GST on a non-cash (accruals) basis instead of a cash basis.
- AUD 20 million or more, it needs to report GST monthly on the BAS instead of quarterly.
The ATO is moving some businesses to the correct GST reporting and accounting methods from 1 July 2026. Businesses or their tax professionals will be notified if changes are being made to GST reporting.
Businesses don’t need to wait for this to happen. The switch can be made voluntarily in Online services for business.
When a business:
- is on full BAS reporting, all GST labels need to be completed rather than only reporting totals at G1, 1A and 1B
- accounts for GST on a non‑cash basis, GST is reported when invoices are issued rather than when payments are received. GST credits can be claimed when the tax invoice for purchases is received, regardless of whether the payment has been made.
- moves to monthly GST reporting, reporting for wine equalisation tax, luxury car tax and fuel tax credits will also change to monthly.
Additionally, businesses should remember to lodge and pay in full and on time when moving to monthly GST reporting.
