The ATO is shifting some businesses who use a “creative“ approach to BAS deadlines (AKA late BAS, missing payments, or the classic ‘ignore it and hope for the best’ strategy) over from quarterly reporting to monthly reporting from April 1, 2025.
No, this isn’t an early April Fool’s joke.
Why the change?
The ATO is on a mission to tighten up compliance, especially after a few less-than-honest folks tried scamming the system.
Apparently, some businesses (definitely not you right) have been a little relaxed about tax obligations. Think: late BAS lodgements, missed payments, or some “creative” reporting. The ATO has decided that for those businesses, smaller, more frequent payments might be a better way to keep things on track
And if you’re thinking, “Great, more admin work,” here’s the upside according to the ATO:
✅ Better cash flow – smaller, regular payments instead of one giant quarterly surprise.
✅ Easier record-keeping – monthly reporting aligns better with other business processes.
✅ Fewer ATO love letters – and by “love letters,” we mean stern reminders about deadlines.
What this means for you
- If you’ve been a bit relaxed with tax deadlines, the ATO might send you a letter saying, “Hey, mate, we’re putting you on monthly reporting.”
- If that happens, you’ll receive a letter soon and be on the new cycle from April 1, 2025.
- After 12 months, if you’ve got your act together (you will!), you can request to go back to quarterly reporting.
- OR, if you’re thinking, “Wait, this actually sounds good,” you can switch voluntarily and get ahead of the game.
How to make the switch?
- Chat with your accountant – AKA your tax superhero – that’s us.
- Update your accounting software – you will need to switch your reporting period.
- Prepare for smaller, more frequent payments – you’ll barely notice them!
- Enjoy better cash flow and fewer panic attacks.
💡Final Thought:
Basically, the ATO says it is just trying to help small businesses build some good habits.
As always, feel free to reach out to one of our team if you have any questions.
– The team at PAL
Disclaimer: This article is here to give you general info, not specific advice for your unique situation. We can’t take responsibility for decisions based on it, so be sure to chat with your accountant or advisor first!
Have a question or comment?
If you have any questions or comments relating to this article (or any other accounting matter) please get in touch with us at [email protected] and we’ll be happy to assist you.
