ATO reveals further details about monthly GST reporting push
A change to monthly GST reporting cycles for businesses that have fallen behind on obligations will remain in place for a minimum of 12 months, the ATO has said.
The ATO has provided further details about its plans to force non-compliant small businesses from quarterly to monthly GST reporting from the start of next month.
In a recent statement, the Tax Office said around 3,500 small businesses with a history of non-payment, late or non-lodgment, or incorrect reporting would be moved from quarterly to monthly GST reporting from 1 April to improve their compliance.
The Tax Office said the move to monthly reporting will help these businesses “address their past unmet tax obligations in a structured way, rather than falling behind”.
It also outlined that a review process will be available for small businesses who don’t believe they have a history of poor compliance and should be able to remain on their current GST reporting cycle.
Information about the review process, including objection rights, will be provided by the ATO to small businesses and their tax professionals where their GST reporting cycle is changed from quarterly to monthly.
ATO deputy commissioner Will Day said that when GST is reported monthly rather than quarterly, this reduces the risk of falling behind.
“We recognise most small businesses try to do the right thing. Our goal is to help small business owners get their tax and super obligations right by providing transparency on the areas we are focused on,” Day said.
“The ATO has a responsibility to level the playing field, as small business owners rightfully expect us to ensure fair competition and compliance.”
Day said the Tax Office took its role seriously and was committed to supporting viable small businesses to comply with their ATO obligations while also taking firmer action on those deliberately not complying.
“‘If you’re a small business who continues to deliberately disregard your obligations, you can expect the ATO to move you to more frequent GST reporting,” he said.
The ATO said this latest compliance action is part of its broader ‘Getting it right’ campaign launched last year.
For this quarter, the Tax Office has also focused on the omission or incorrect reporting of income by contractors working in the building and construction, cleaning, courier and road freight, information technology, or security, investigation or surveillance industries.
It has also focused on compliance for small business boost measures such as the small business skills and training boost and the small business technology investment boost.
The ATO said it would keep publishing new focus areas quarterly to ensure all small businesses had an equal chance at success.
