ATO to introduce annual GST return for large businesses
The Tax Office will introduce a supplementary annual GST return for large businesses that have received a GST assurance review.
After releasing the findings of its Top 1,000 GST assurance review program and combined assurance reviews, the ATO has announced it will be introducing a supplementary annual GST return for large businesses that have received a GST assurance review.
In an update this week, the ATO said the GST return will help the ATO to better tailor its engagement with the Top 100 and Top 1,000 public and multinational business taxpayers for GST.
"The information provided in the annual return will enable more targeted and less resource intensive justified trust reviews for many taxpayers," it said.
"The return is straightforward to complete and targeted at understanding how taxpayers have actioned recommendations from our earlier review, and key updates on governance and GST compliance for the year."
The ATO said that taxpayers who have achieved high levels of assurance are expected to be the key beneficiaries of the return as they've already adopted best practice governance and systems practices.
ATO deputy commissioner Rebecca Saint said with large public and multinational businesses collecting around 60 per cent of all GST, it is important that the ATO has confidence they are collecting and remitting the right amount.
"Most are meeting their GST obligations. Our justified trust program has driven improvements in governance and systems controls," Saint said.
"This will deliver lasting confidence about the GST compliance of most large businesses."
Saint said the new annual return will build on this by enabling the ATO to better monitor taxpayers and reduce the need for intensive justified trust reviews in many circumstances.
"We've undertaken significant consultation in developing our approach and will continue to engage with stakeholders as we move towards implementing the new return," she said.
The ATO plans to initially trial the new return through a pilot, where it will work with a small number of Top 100 and Top 1,000 taxpayers to respond to the return questions as part of their assurance reviews.
"This will focus on the clarity and functionality of the questions to ensure they work as intended," the ATO said.
"We expect to commence the pilot in the next 6 months. If you're part of this group, we'll reach out to you soon."
Remaining taxpayers will need to start lodging the return from the 2024–25 financial year, the ATO said.
The due date for lodgment will depend on the entity's financial year, with the first lodgments for early balancers due on 21 August 2025.
"We'll be updating our web guidance soon with a copy of the return and with further detail on who is required to lodge," the Tax Office said.
"We'll include when the return is due, how we'll use the information you provide, and instructions for how to complete the return. We'll also directly notify those who need to lodge."
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