The Australian Taxation Office (ATO) is cracking down on thousands of small businesses who are tardy with their quarterly GST reporting obligations.
ATO Deputy Commissioner Will Day said around 3500 small businesses with a history of non-payment, late or non-lodgment, or incorrect reporting would be moved to monthly GST reporting, from April 1, to improve their compliance.
Mr Day said moving to a monthly reporting and payment cycle could help small businesses to keep on top of their obligations and remain viable.
“Small businesses that report monthly will be better able to address their past unmet tax obligations in a structured way, rather than falling further behind,” he said.
Mr Day said the ATO would contact the impacted small businesses and their tax professionals.
“The move is designed to improve compliance with GST obligations and build good business habits.”
He said small businesses that voluntarily moved their GST reporting and payment cycle to monthly had found it easier to manage their cash flow and meet their obligations with smaller, more manageable payments.
“Running a small business is serious business – so it pays to keep on top of your tax obligations, and we know 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.”
Mr Day said the ATO had a responsibility to level the playing field, as small business owners expected the ATO to ensure fair competition and compliance.
“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.”
