ATO changes GST reporting periods for some small businesses
As a small business owner, it's essential to stay on top of your tax obligations.
Recently, the ATO has announced that it will be moving around 3,500 small businesses from quarterly to monthly GST reporting to improve their compliance. If you run one of these businesses, you'll be notified by the ATO, and this change will take effect from 1 April 2025.
The shift is part of the ATO's “Getting it right” campaign, designed to help businesses that have struggled with late or non-payment of GST, late or non-lodgment of BAS, or incorrect tax reporting. The ATO says it’s found that small businesses that report and pay GST monthly are better able to manage their cash flow and meet their obligations. By reporting monthly, you'll be able to make smaller, more manageable GST payments, which can help you avoid falling behind.
For many businesses, monthly reporting also aligns better with existing reconciliation processes and provides more timely information for decision-making.
How will this affect you?
If you run one of the small businesses being shifted to monthly GST reporting, the ATO will contact you and your tax professional directly, and you'll need to start lodging and paying your GST on a monthly basis. The change will remain in place for a minimum of 12 months, and is designed to support you in developing good business habits and improving your overall compliance with GST obligations.
The due date for lodging and paying your monthly BAS will be the 21st day of the month following the end of the taxable period.
For example, a July monthly BAS will be due on 21 August. The ATO emphasises that most small businesses try to do the right thing, and these measures are designed to level the playing field while providing additional support to those who need it. After the mandatory 12-month period of monthly reporting, you’ll be able to request to change back to quarterly reporting as long as your business has demonstrated good compliance during that time.
What if you disagree with the ATO’s decision?
If you’re notified but believe you have a good compliance history and should be able to remain on your current GST reporting cycle, you can lodge an objection with the ATO. You'll need to provide reasons why you think the decision is incorrect, and the ATO will review your case.
Want to switch to monthly reporting voluntarily? Even if you aren’t moved to monthly reporting as part of this campaign, you might consider changing your reporting period voluntarily. Sole traders will need to phone the ATO or apply in writing. For other businesses, you or your registered tax or BAS agent can request to change your reporting and payment cycle through the ATO’s Online services for business or Online services for agents.
Need help? If you're struggling to meet your tax obligations, seek help early. Contact your registered tax professional, a business adviser or the ATO.