ATO Changes GST Reporting rules for Non-Compliant Small Businesses
The Australian Tax Office (ATO) has made changes to GST reporting rules for non-compliant small businesses. Taking effect from 1 April 2025, some small businesses may be required to switch from quarterly to monthly reporting. Learn what this means, who it will affect and how to stay compliant below.
Why is the ATO changing reporting requirements?
As part of a corrective action plan, the ATO requires non-compliant small businesses to shift from quarterly to monthly reporting of GST earnings.
According to the ATO, the new change “encourages good compliance habits and supports small businesses to remain viable.” As well as helping small business owners:
- Stay on top of their tax obligations
- Identify issues earlier
- Avoid building up unmanageable tax debts
Who will it affect?
As of March 2025, the ATO began sending out written notices to small businesses who have a pattern of failing to comply with their GST reporting obligations, alerting them to these changes.
Can you challenge the decision?
If you don’t believe you fall into this category, you can lodge an objection here.
Alternatively, if after 12-months you’ve kept up with your GST reporting obligations, you can ask to have your reporting cycle changed back to quarterly.
How to Stay on Quarterly Reporting
If you’d prefer to keep quarterly GST reporting, you can take action by:
- Catching up on any overdue BAS
- Pay outstanding GST or arrange a payment plan
- Ensure future lodgements are on time
- Use automated accounting software
- Engage a registered BAS or tax agent to assist you with your small business compliance.
Learn more on the ATO’s website
Need Help Staying on Track?
At Advisory Partner, we work closely with small businesses to simplify compliance, reduce stress, and avoid surprises from the ATO. Whether you’re already on top of your BAS or need help getting back on track, we’re here to support you.
Contact your local office today to make an appointment.