Upcoming Changes to GST Reporting

Posted by

Rebecca Garnsey

·

What You Need to Know

The Australian Taxation Office (ATO) is introducing changes that could affect how often some businesses report and pay Goods and Services Tax (GST). If you’ve experienced delays in lodging your Business Activity Statements (BAS) or want to stay ahead of the curve, now is the time to review your processes.

Monthly GST Reporting from 1 April 2025

From 1 April 2025, businesses with a history of non-compliance—such as repeated late BAS lodgements or payments—may be required to shift from quarterly to monthly GST reporting. The ATO’s aim is to encourage improved cash flow management and reduce the build-up of tax debts.

Who’s Already Reporting Monthly?

  • Businesses with GST turnover of $20 million or more are already required to lodge monthly.
  • Those with turnover under $10 million can generally report quarterly using simplified BAS methods—however, the ATO may require monthly reporting if there are compliance concerns.

How Will You Know?

If your business is required to switch to monthly reporting, the ATO will notify you formally.

How to Prepare and Stay Compliant

1. Review Your Compliance History
Take stock of any previous late lodgements or payments and start addressing any ongoing issues.

2. Improve Your Record-Keeping
Ensure your bookkeeping is current and accurate. A reliable accounting system makes timely lodgement much easier.

3. Strengthen Financial Management

  • Keep sales and purchase records up to date.
  • Set reminders for BAS lodgement and payment deadlines to avoid penalties.

4. Plan for Monthly GST Payments

  • Budget impact: More frequent lodgements may affect your cash flow—review your finances now to prepare.
  • Voluntary switch: Even if not required, opting for monthly reporting may benefit your cash flow and show the ATO a commitment to compliance.

5. Communicate Early with the ATO
If you’ve had issues due to cash flow challenges or other circumstances, it’s a good idea to engage with the ATO proactively.

Need Help?
If you need help with your BAS’s, feel free to reach out – we’re here to help.

Rebecca Garnsey avatar

About the author

My Name is Rebecca Garnsey. I am Chartered Accountant (CA), Tax Agent, and Self-Managed Superannuation Fund (SMSF) Specialist with the Self Managed Superannuation Association. With a passion for delivering high-quality financial advice, I have also completed the RG146 Diploma of Financial Planning, which has enabled me to become an Authorised Representative of Merit Wealth. This allows me to provide my clients with comprehensive, holistic advice on SMSFs and related financial matters. Since starting my career in 2001, I’ve built a reputation for providing clear, approachable, and personalised financial advice.