ATO Targets Late BAS with Monthly GST Reporting
ATO Crackdown: Non-Compliant Businesses Face Monthly GST Reporting from ATO
More frequent BAS, bigger bookkeeping bills — why staying compliant with monthly GST reporting is now the gold standard for small business.
ATO Gets Tough on Late BAS Lodgers
The Australian Taxation Office (ATO) is sharpening its focus on businesses that fall behind on their GST obligations. If you’re regularly late lodging your Business Activity Statement (BAS) or missing payments, you may soon be required to report monthly instead of quarterly — even if your turnover doesn’t normally require it.
This tougher stance aims to increase compliance visibility and reduce unpaid GST across the economy.
According to Accounting Times, ATO Deputy Commissioner Hoa Wood said:
“Where businesses are not meeting their obligations, we may move them to monthly reporting to increase visibility.” – Source: Accounting Times
While the quote comes from a media source and isn’t published on the ATO’s own site, the ATO does confirm it can enforce a change in GST reporting cycle due to non-compliance:
“We may also change your reporting and payment cycle if you fail to comply with your tax obligations.” – ATO – Changing your reporting and payment cycle
What the Change Means for Small Businesses
For many small businesses, quarterly BAS lodgement helps manage time and cash flow. A move to monthly reporting changes that rhythm dramatically.
12 lodgements per year instead of four means:
- More admin
- Less time to set aside funds
- Reduced flexibility in managing GST liabilities
And critically — increased costs.
Higher Frequency = Higher Costs
While costs vary depending on the volume of transactions and your service provider, more frequent lodgements generally mean more time spent on compliance.
Expert Insight: “Monthly reporting adds significant time and labour to the bookkeeping process. It’s a hidden cost that can add up quickly”
If you currently pay $300 per quarter for BAS support, switching to monthly could increase that to around $200–$300 per month, depending on your setup. That could mean an extra $2,400 to $3,600 per year — not counting internal admin time.
It’s a costly shift — like trading in your quarterly golden cruise for a monthly rowing race.
Who’s at Risk?
According to Accounting Times, the ATO has already issued over 20,000 warning letters to non-compliant businesses and agents. While this figure isn’t confirmed on ato.gov.au, it signals a growing push to clamp down on late lodgers.
Businesses most at risk include those who:
- Lodge BAS late on a regular basis
- Miss GST payments without arranging payment plans
- Ignore ATO communication or overdue notices
Non-compliance isn’t just a tax problem — it often points to deeper cash flow issues.
Remember: GST isn’t your money. You collect it on behalf of the ATO. Falling behind puts your business at financial and legal risk.
Why Staying Compliant Is Worth Its Weight in Gold
There’s a golden rule in small business — look after your compliance, and your compliance will look after you.
By meeting BAS deadlines:
- You avoid unnecessary ATO scrutiny
- You reduce accounting fees
- You maintain smoother cash flow
Keeping your reporting quarterly saves time, money, and stress. And it keeps the ATO out of your day-to-day operations.
Take Action Before the ATO Does
The ATO’s official advice is clear:
“If you fail to meet your tax obligations, we may change your reporting and payment cycle.” – ATO – Lodging GST returns
If you’re struggling to meet BAS deadlines, now is the time to act.
- Set up payment plans if you’re behind
- Automate your GST record-keeping where possible
- Work closely with your accountant or bookkeeper to stay on track
Don’t Let the ATO Take the Reins
If you’re worried about falling behind or unsure what your next BAS lodgement should look like, we’re here to help.
Contact DJ Grigg Financial today for a BAS health check and tailored support. Let us help you stay compliant, avoid costly changes, and keep your financial systems golden.