Managing GST risks and behaviours
Addressing and influencing taxpayer behaviour to maximise voluntary compliance and minimise GST gap remains a priority. Taxpayer actions which impact the GST gap continue to range in severity from honest reporting errors to deliberate non-compliance, and include:
- non-reporting of GST
- under-reporting of GST
- over-claiming of refunds
- non-payment of GST liabilities.
Our compliance programs therefore provide a balance of prevention, early engagement and assurance activities and target higher-risk taxpayers and industries.
We continue our focus on managing GST compliance risks and behaviours impacting the integrity of the GST. Contemporary technology continues to strengthen our ability to manage GST risks including fraud by:
- improving our risk identification process with earlier detection techniques, enabling us to apply differentiated and tailored treatment strategies
- delivering an automated solution to streamline processes related to managing high-risk refunds
- providing staff with a more holistic view of GST lodgment to support a better client experience when engaging with taxpayers.
Where a business activity statement (BAS) lodged online contains an identifiable or likely reporting error, nudge messaging recommending taxpayers check their BAS before lodging their refund is generated. While previously we were legally constrained to process GST refunds in 14 days, recent legislative change means we now have 30 days to process refunds. This allows us more time to detect and investigate potential fraud before a refund is issued.
Helping businesses to get it right
We are committed to helping small businesses get it right to register for GST when required and report their GST transactions accurately. For example, in 2024–25 we commenced work to connect with and help ride-sourcing drivers register for GST and meet their BAS lodgment and reporting obligations. These initiatives will continue as part of our 'helping small businesses get it right' focus.
We are also being transparent where we are concerned that small businesses are getting it wrong, being opportunistic or deliberate on an ongoing basis. We want to help small businesses set up good habits to get it right and stay on track.
To ensure large businesses pay the right amount of GST and to reduce the gap, we have a combination of one-to-one and one-to-many approaches. These include our justified trust assurance programs and advice and guidance strategies. From the 2024–25 year on, we have introduced the Supplementary annual GST return for large businesses that have received a GST assurance rating through a GST assurance review. With a focus on their ongoing investment in GST compliance, the information provided in the annual return will enable more tailored and less resource investment for justified trust reviews for many taxpayers.
We prevent compliance issues before they arise, by supporting those who want to do the right thing and helping them reduce mistakes through:
- reminders
- nudges
- improved information on our website
- public advice and guidance.
At the same time, we take a firmer approach with those we detect deliberately evading their GST and other tax obligations.
Closing the gap
We will continue to work towards closing the GST gap by:
- building trust and confidence within the community by implementing strategies under the GST Compliance Program
- achieving GST compliance outcomes from other ATO government funded programs, including the
For more information on the concept of tax gaps, including why and how we measure them, and a summary of the latest available tax gap data, see Australian tax gaps – overview.