ATO cracks down on non-compliant small businesses
Small business owners often find themselves buried under a mountain of paperwork and tax obligations, struggling to stay on top of their responsibilities. With mounting stress and looming deadlines, it’s easy to feel overwhelmed in the day-to-day hustle of managing a business.
Now, the ATO have announced they intend to add more pressure on tardy business owners by moving them to mandatory monthly GST reporting. The ATO says the move is aimed at helping businesses meet their tax obligations more effectively.
From 1 April 2025, the ATO will shift certain non-compliant small businesses to monthly GST reporting instead of quarterly.
What does 'non-compliant' mean?
- A history of non-payment
- Frequent late lodgements
- Incorrect reporting of tax obligations
If any of these sound familiar, you could be on the ATO’s radar.
Who is affected?
For the June quarter, the ATO is focusing on:
- Building & Construction
- Cleaning Services
- Courier & Road Freight
- Information Technology (IT)
- Security, Investigation & Surveillance
What else is under review?
The ATO is also focusing on non-compliance in claiming either of these Small Business Boost Measures:
- Small Business Skills & Training Boost
- Small Business Technology Investment Boost
What you can do right now
To avoid being caught on the back foot we suggest that small business owners:
- Check your compliance with the matters outlined above.
- Be prepared for monthly reporting if you get the notice.
- Talk to your accountant! If you need help navigating this change, contant us for expert support.
Also note….
Tax deductions for ATO interest charges to be denied?
Legislation is in progress which, if passed, will deny tax deductions for ATO general and shortfall interest charges (GIC & SIC) from 1 July 2025.
This means non-compliance will hit your bottom line even harder.
Now is the time to get on top of your tax obligations – get in touch today.
