The Australian Taxation Office (ATO) has announced that beginning 1 April 2025, businesses that have failed to comply with their goods and service tax (GST) obligations during the previous quarters will be required to file their reports monthly.
The ATO’s pronouncement aims to improve tax compliance and crack down on businesses that have been slacking on their GST obligations such as late payments or non-payment of GST, incorrect GST reporting, or late BAS lodging.
ATO also stated that this will help businesses meet their tax obligations and help develop good business habits by better aligning reporting with their reconciliation processes, thus saving time and making tax reporting easier.
Many businesses have voluntarily switched from quarterly to monthly GST reporting. The ATO shared that the switch has help businesses with their tax compliance and cashflow management.
Businesses forcibly transitioned by the ATO from quarterly to monthly GST reporting will be notified in writing beforehand.
