ATO updates
Below are some handy extracts from the CPA Australia newsletter highlighting some recent activity from the ATO which demonstrates the ATO has small business in focus.
ATO shifts to monthly GST for non-compliant small businesses
The ATO has announced that from 1 April 2025, it will be moving 3,500 small businesses from quarterly to monthly GST reporting - those with a history of non-payment, late or non lodgment, or incorrect reporting to improve their compliance. Changes to reporting cycles will remain in place for a minimum of 12 months as part of the ATO's 'Getting it right' campaign. The ATO will contact small businesses and their tax professionals when their GST reporting cycle is changed from quarterly to monthly.
ATO new focus areas for small business in 2025
The ATO has announced its new focus areas for small businesses to help them meet their tax and superannuation obligations in 2025. Deputy Commissioner Will Day highlighted that while most small businesses aim to do the right thing, the ATO is proactively sharing specific risk areas each quarter. Key concerns include contractors omitting income and utilising data matching for verification. The ATO will also focus on the transition from quarterly to monthly BAS reporting for GST to foster good business habits and improve cash flow. In addition, the small business boost measures and encouraging self-amendment to correct errors and omissions. The ATO will continue to monitor non-commercial business losses, CGT concessions, business versus personal income, and GST registration for taxi/ride-sourcing services. The aim is to help small businesses establish good habits early on. Resources and support are available on the ATO website, including online courses.