Bad lodgement history? The ATO has a fix for that!

Do you have a love hate relationship with your Business Activity Statement (BAS) lodgements? Are you struggling to keep on top of your BAS debt? Well help may be at hand. The ATO has implemented mandatory changes to how you lodge your BAS.

The ATO has announced from 1 April 2025, it will be moving around 3,500 small businesses with a history of non-payment, late or non-lodgement, or incorrect reporting from quarterly to monthly GST reporting to improve their compliance.

The ATO see this as a way for small business to keep on top of their obligations and remain viable. Small businesses that report monthly will be better able to address their past unmet tax obligations in a structured way, rather than falling further behind.

If you’re one of the businesses affected by the above, the ATO will contact you and us, if your GST reporting cycle is changed from quarterly to monthly. Changes to reporting cycles will remain in place for a minimum of 12 months as part of the ATO’s ‘Getting it right’ campaign.

Historical ATO data has shown, small businesses who have voluntarily moved their GST reporting and payment cycle to monthly have found it easier to manage their cash flow and meet their obligations with smaller, more manageable payments. For many, reporting and paying GST monthly aligns better with their reconciliation process, which is more efficient and saves time.