You may no longer have an option. Here’s what you need to know
If you’re a small business owner, staying on top of your GST obligations is a must. The ATO is stepping up its compliance game, and for some businesses, that could mean a shift from quarterly to monthly GST reporting.
Why the Change?
Starting from March 2025, the ATO will begin moving certain small businesses with poor compliance records to monthly GST reporting. This means you no longer have the option of reporting quarterly. If this applies to you, they’ll let you know.
So, who’s likely to be affected? The ATO will be focusing on businesses that haven’t been keeping up with their obligations—for example:
- Consistently paying late or not paying at all
- Lodging BAS late or not lodging it at all
- Making errors in reporting GST
What Does This Mean for Your Business?
1. More Regular Reporting
Instead of submitting your BAS every quarter, you’ll now have to do it every month. That means keeping your books up-to-date more often and being more hands-on with your GST.
2. Cash Flow Adjustments
Monthly GST payments mean more frequent outflows, so you might need to tweak your cash flow strategy to make sure there’s enough working capital available.
3. Greater Emphasis on Accuracy
With more frequent reporting comes more ATO oversight. Staying accurate and consistent with your records will help you avoid penalties or compliance issues.
Staying Ahead of the Game
If your business is being moved to monthly reporting by the ATO, the key is to stay organised. Make sure your records are current, keep an eye on deadlines, and don’t let things pile up.
It might sound like a hassle, but monthly reporting doesn’t have to be stressful. With a solid system in place, it can actually help you stay more in tune with your numbers.
Need a hand navigating the change? We’re here to help. Get in touch if you’d like support with your GST reporting or just want to chat through your options.
