Monthly GST Reporting for Non-Compliant Businesses

From April 2025, the ATO has begun moving around 3,500 small businesses with a history of non-compliance from quarterly to monthly GST reporting. Forming part of the ATO’s “Getting it Right” campaign, the change will apply for at least 12 months, and both affected businesses and their tax professionals will be formally notified.

Why the Change?

The ATO has identified that aged tax debt and poor lodgement compliance are strong signs of financial stress. By switching to monthly GST reporting, the aim is to:

• Improve compliance.
• Help businesses manage tax obligations more effectively.
• Address unpaid tax debts in a structured way.

Many businesses that have voluntarily moved to monthly reporting say the change has actually helped, allowing them to better manage cash flow with smaller, more regular payments rather than larger quarterly sums.

What This Means for Businesses

The ATO is clear: it wants to support viable small businesses, but it will also take stronger action against those who deliberately fail to comply. Monthly reporting is not just about compliance — it’s about giving businesses the opportunity to get back on track and avoid mounting debt.

If your business is struggling with GST, ATO debt, or broader financial health, early professional advice is critical. At Smith Hancock, we work with businesses to develop practical solutions that keep them afloat and guide them through their obligations with the ATO.

If you’re concerned about cash flow, debt, or compliance, don’t wait — contact Smith Hancock today for tailored support.