The Australian Taxation Office (ATO) is making changes that will impact small businesses that have a history of non-compliance with their GST reporting. From 1 April 2025, the ATO will transition certain small business taxpayers from quarterly to monthly GST reporting. This shift will apply to businesses with a track record of late payments, missed Business Activity Statements (BAS), or incorrect GST reporting. Affected businesses will receive official notification from the ATO.
Why This Matters: The Cost of Non-Compliance
For businesses that consistently lodge their BAS late, the move to monthly reporting could mean a significant financial hit. Instead of facing four fines per year for late lodgments, they could now be looking at 12 fines annually—tripling the potential penalties. This could lead to thousands of dollars in unnecessary costs simply for failing to meet deadlines.
Voluntary Monthly Reporting: Is It Right for Your Business?
While some businesses will be required to switch, others may choose to opt in voluntarily. There are several benefits to monthly GST reporting, including:
- Better Alignment with Business Processes: If your business already conducts monthly reconciliations, monthly GST reporting could streamline your financial workflow.
- Improved Cash Flow Management: Smaller, more frequent payments may be easier to manage than large quarterly amounts.
- More Accurate Reporting: Regular reporting reduces the risk of errors accumulating over a longer period.
What You Need to Do Next
- Review Your Compliance History – If you have a habit of late lodgments, now is the time to improve your processes.
- Prepare for the Change – Businesses affected by the mandatory switch should adjust their bookkeeping to handle monthly reporting.
- Consider Voluntary Monthly Reporting – If the benefits align with your business operations, moving to monthly reporting could be a proactive step.
- Seek Professional Advice – If you’re unsure how these changes impact you, speak with your accountant or bookkeeper to develop a strategy that keeps you compliant and optimises your cash flow.
The Bottom Line
Ignoring GST lodgment deadlines can now cost businesses more than ever. The shift to monthly reporting is a wake-up call for those who have struggled with compliance. Instead of facing up to 12 fines a year, staying on top of your BAS lodgments can save your business money, stress, and administrative headaches.
Don’t let inaction cost you—stay ahead of these changes and ensure your business remains compliant. If you need help with GST reporting and compliance, reach out to our team for expert guidance.
