The ATO is focused on small businesses who may need to change from quarterly to monthly GST reporting to stay on track.
If you operate a small business, from 1 April 2025, the ATO may move you from quarterly to monthly GST reporting if you have a history of not complying with your obligations, for example:
- missing payments
- lodging your BAS late
- reporting your GST incorrectly.
If the ATO moves you to monthly GST reporting, they will notify you in writing.
The move is designed to support you to meet your obligations and to embed good business habits into your business by better aligning reporting with your reconciliation processes. This will help make reporting easier and save you time.
Voluntarily moving to monthly GST reporting
Many small businesses have already moved to monthly GST reporting voluntarily. This has helped them improve their cash flow and keep their record keeping up to date.
Generally, small businesses that report their GST monthly find that:
- monthly reporting aligns better with other natural business processes
- cashflow management improves, which helps them make more informed business decisions
- making smaller, more manageable payments helps them meet their tax obligations.
How to get it right
Monthly reporting may make it easier for you to track your finances and business performance and make more informed decisions each month. It also may help you stay on track with smaller, more manageable payments, while saving you time by aligning better with your reconciliation processes.
Example: voluntary monthly reporting
Andrew and Sean have been running a small business delivering community art workshops and an online craft store for over 10 years. Their turnover ranges from $450,000 to $950,000 per year. Despite their success, they struggle to meet their tax obligations on time. As the business has grown, meeting quarterly reporting obligations has become even more challenging.
Their accountant has set up quarterly GST reporting on their behalf. They use a popular digital accounting software package for BAS preparation. But with the demands of running a busy business, along with their personal commitments, they develop a pattern of lodging and paying late.
After seeking advice from their accountant, they move to voluntary monthly reporting. This marks a turning point in their business. They find it easier to keep on track with accurate, up-to-date record-keeping, which helps them make better business decisions. Their cash flow management improves and by avoiding larger, quarterly payments, their risk of falling behind is reduced. |
Keep up to date
Find out how to change your BAS lodgment cycle.
Learn more by taking the ATO’s free self-paced online courses at:
You can also:
Source: Australian Taxation Office