The ATO have announced that from 1 April 2025, they will be moving a significant number of small businesses with a “poor compliance history” from quarterly BAS’s to monthly BAS’s. According to the ATO, this is designed to “support you to meet your obligations and embed good business habits”.

A little-known part of GST Law is that businesses with a poor compliance history can be compelled to report their GST monthly, and for the first time in 25 years, it is going to be enforced. This continues a trend we are seeing where the ATO is becoming less forgiving with debts and lodgments.

­You can read the ATO’s full explanation here.

We have received no guidance as to what the ATO considers a “poor compliance history”, but we suggest that if you have multiple overdue BAS’s as of 1 April, or have in the past 12 months lodged or paid 2 or more BAS’s late, then you may be in the firing line.

If you are impacted, the ATO will write to you (presumably in April), and let you know when you are required to report GST to them monthly. Once you are moved to a monthly BAS, you will not be able to return back to a quarterly cycle until the ATO is satisfied that you are complying with your obligations (which we predict will be lodging and paying at least 12 monthly BAS’s on time in a row).

We also expect this is not a once-off and it will become another tool the ATO use to “help” businesses get their lodgments under control, but it is important to note that monthly reporting means the ATO has 12 opportunities to fine you per year.

­It is fair to say that now is the time to make an extra effort to lodge and pay your BAS’s on time – the last thing you need is to have to lodge 12 BAS’s instead of 4, and risk 12 fines at the same time.

As always, if you need help staying on top of your GST obligations, all you need to do is ask.