Australia’s Non-Compliant Small Businesses to Face Mandatory Monthly GST Reporting

Countries worldwide are continuously working on dealing with large companies and small businesses that do not comply with tax rules and regulations. As part of its effort to subject non-compliant small businesses to better monitoring and tracking of tax compliance, the Australian Taxation Office announced the decision to move several thousand small businesses to monthly GST reporting.

Implications for Small Businesses

As the Australian Taxation Office (ATO) announced, from April 1, 2025, around 3,500 small businesses with a history of poor reputation in terms of not paying, not filing, or being late in paying or filing taxes will have to file monthly GST reports. Until this decision was made and announced, those businesses were subject to quarterly GST reporting. 

The ATO will contact small businesses that must transit to new GST reporting and payment frequency. All businesses liable for monthly GST reporting will remain in that reporting cycle for at least 12 months.

In its announcement, the ATO focused on specific industries, including building and construction, cleaning, courier and road freight, information technology (IT), security, investigation, and surveillance.

This measure is part of the ‘Getting it Right’ campaign, which aims to increase tax compliance. Additionally, the decision to subject non-compliant small businesses to monthly reporting was made based on the data that shows that those who file reports and pay GST more frequently manage cash flow more efficiently. Moreover, paying a smaller amount of GST monthly proved less burdensome for small businesses than quarterly payments.

Conclusion

The announced measure of moving around 3,500 small businesses to monthly GST reporting and payment has two sides. On one side, this will provide better oversight of businesses that are deliberately non-compliant and trying to avoid their tax obligations. 

On the other hand, some small businesses have difficulties achieving compliance due to a lack of funds or knowledge. Subjecting these businesses to more frequent payments of smaller amounts and requiring them to file GST reports more often should help ease their administrative and financial issues.

Source: Australian Taxation Office