From 1 April 2025, the Australian Taxation Office (ATO) has begun transitioning certain small businesses from quarterly to monthly GST reporting. This change targets businesses with a history of non-compliance, including missed payments, late or non-lodged Business Activity Statements (BAS), and incorrect GST reporting.
Roughly 3,500 small businesses have already been moved to monthly reporting. The ATO has issued written notifications to affected businesses. The aim of this change is to improve compliance by aligning GST reporting with businesses’ natural reconciliation cycles, making it easier for them to stay on top of their obligations.
According to the ATO, reporting GST monthly can help businesses better manage cash flow, keep financial records up to date, and make more informed financial decisions. Smaller, more frequent payments are often easier to manage and reduce the risk of falling behind.
The ATO also emphasised that many small businesses have already chosen to report monthly voluntarily, finding the approach more in sync with their day-to-day operations. By requiring more frequent reporting from businesses with compliance issues, the ATO hopes to support better financial habits and prevent overdue tax debts from compounding.
A formal review process is available for small businesses that believe they were incorrectly classified as non-compliant. Information about this process, including objection rights, is being provided directly to impacted businesses and their tax agents.
The ATO has confirmed that this initiative forms part of its wider ‘Getting it right’ campaign, which is focused on promoting transparency, fairness, and improved compliance across the small business sector.
What you can do:
- Review your GST lodgement and payment history
- Speak with your accountant or BAS agent to understand the impact of a monthly reporting cycle
- Proactively resolve any outstanding tax obligations
- Consider whether a voluntary move to monthly reporting could benefit your business
If you’ve received a notice from the ATO or would like help transitioning to monthly GST reporting, our team is here to assist you.