Transition to Monthly GST Reporting: What You Need to Know

Key Updates from the ATO

Changes to Goods and Services Tax (GST) reporting are on the horizon, and they may affect how often some businesses file their Business Activity Statements (BAS). If you’ve had challenges with timely GST lodgements in the past or simply want to stay prepared, here’s what you should know.

Monthly GST Reporting Requirement
Starting 1 April 2025, businesses with a history of non-compliance such as repeated late BAS lodgements or payments may be required to move from quarterly to monthly GST reporting. The goal is to support better cash flow management and discourage debt accumulation.

Who It Already Applies To

·         If your GST turnover is $20 million or more, you’re already required to report monthly.

·         If you have a GST turnover under $10 million, you can use simpler BAS reporting methods (though the ATO may direct you to monthly reporting if compliance issues arise).

How You’ll Know
Businesses that must switch to monthly reporting will receive a formal notice directly from the ATO.

Steps to Prepare and Stay Compliant

Review Past Compliance

Identify any issues with late BAS lodgements or payments.

Work on improving record-keeping to ensure accurate, timely reporting.

Strengthen Financial Management

Keep sales and purchase records up to date with an efficient accounting system.

Set reminders for lodging and paying BAS on time to avoid future penalties.

Plan for Monthly Reporting

Cash Flow Impact: Monthly reporting means more frequent payments, so assess how this change could affect your budget.

Voluntary Switch: Even if not mandated, transitioning to monthly reporting might benefit your cash flow and show the ATO you’re proactive about compliance.

Engage Early with the ATO

If circumstances (e.g., cash flow issues or unforeseen events) contributed to late lodgements, it may help to discuss them with the ATO sooner rather than later.

Why Talk to Your Accountant

These GST changes can be complex, and every business’s situation is different. Your accountant or business adviser can:

• Evaluate your current GST reporting practices.
• Help you improve record-keeping for smoother compliance.
• Discuss whether switching to monthly reporting or remaining on quarterly is best for your cash flow.
• Guide you through the ATO’s formal requirements and help you respond if you’re notified about a required change in reporting frequency.

If you suspect your business might be affected or if you simply want to stay ahead of potential changes reach out to your accountant. By planning now, you can maintain control of your finances and ensure you’re always ready for any updates from the ATO.

Talk to us to stay compliant and arrange for a suitable finance strategy for your business to tackle the monthly GST reporting.