The Australian Taxation Office (ATO) has announced that small businesses failing to comply with regulations will be required to transition from quarterly to monthly goods and services tax (GST) reporting.
The Australian Taxation Office (ATO) said that from 1 April 2025, it will be moving around 3,500 small businesses with a history of non-payment, late or non lodgment, or incorrect reporting from quarterly to monthly GST reporting to improve their compliance.
Moving to a monthly reporting and payment cycle can help small businesses to keep on top of their obligations and remain viable. Small businesses that report monthly will be better able to address their past unmet tax obligations in a structured way, rather than falling further behind.
The ATO will contact small businesses and their tax professionals when their GST reporting cycle is changed from quarterly to monthly.
The move is designed to improve compliance with GST obligations and build good business habits. Changes to reporting cycles will remain in place for a minimum of 12 months as part of the ATO’s ‘Getting it right’ campaign.
Small businesses that voluntarily moved their GST reporting and payment cycle to monthly have found it easier to manage their cash flow and meet their obligations with smaller, more manageable payments. For many, reporting and paying GST monthly aligns better with their reconciliation process, which is more efficient and saves time.
Small businesses struggling to meet their tax obligations need to not ignore the problem but act early, whether that’s seeking assistance from their registered tax professional, a business adviser or the ATO.
