Our focus
In March 2025, as part of our 'Getting it right' campaign, we notified 3,500 businesses with a history of non-compliance that they would be moved from quarterly to monthly GST reporting, effective from 1 April 2025.
These businesses had not responded to previous communications from us and demonstrated ongoing poor compliance behaviours, for example:
- paying late or not paying the amount due
- not lodging or lodging late
- reporting their tax obligations incorrectly.
The change was intended to support these businesses to meet their obligations and embed good business habits, by more closely aligning GST reporting with their regular reconciliation and cash flow processes.
This move to monthly reporting applies for a minimum period of 12 months.
Following the success of this campaign, the ATO will continue to move businesses with a poor compliance history to monthly GST reporting where appropriate, as part of our broader compliance approach.
Quarterly to monthly GST reporting campaign results
The campaign has generated a positive response from participating businesses.
Many businesses reported that monthly reporting made it easier to track their finances and business performance, helping them make more informed and timely decisions.
As at March 2026, the campaign has resulted in:
- approximately a third of the businesses updating their registration details
- approximately half of the businesses lodging and paying on time
- some businesses recognising the need for additional support and registering with a new tax agent.
These early results indicate improved engagement and progress toward stronger ongoing compliance.
Example: business moved from quarterly to monthly reporting
Andrew has been running a carpentry services business in the building and construction industry for a few years, growing to a team of 14 employees. While the business has been reporting pay as you go (PAYG) withholding monthly through Single Touch Payroll (STP), they struggled to meet their tax obligations on time. Irregular payments common in construction work have made cash flow unpredictable, and despite attempts to engage with the ATO, their debt continued to increase until it reached $251,920.
As his business grew, keeping up with quarterly GST reporting became harder. Lodgments were often late, and payment arrangements were set up but later defaulted. Meeting large quarterly amounts all at once placed extra pressure on their cash flow.
In April 2025, the ATO moved the business to monthly GST reporting for a minimum of 12 months due to poor compliance. In October 2025, they engaged a new tax agent who helped them lodge their activity statements, set up long-term payment plans through to 2028 and improved their bookkeeping processes. This shift marked a turning point.
Monthly reporting made their obligations feel more manageable, and the smaller, regular amounts helped them stay on top of cash flow.
When seasonal pressures affected them in January 2026, they sought help early and asked the ATO for a deferral of their monthly business activity statement (BAS). The ATO approved the request under low-risk criteria, giving them extra time to lodge and pay without falling behind.
Over the following months, the business maintained strong lodgment behaviour, submitting 10 BAS, an income tax return and a taxable payments annual report (TPAR) on time. At the end of the 12 month period, they chose to continue reporting monthly.
With their tax agent’s support, they aligned their PAYG withholding cycle with their GST reporting, reinforcing good habits and preparing the business for future obligations such as Payday Super.
End of exampleKeep up to date
Find out how to change your BAS lodgment cycle and about voluntarily changing your reporting cycle.
Learn more by taking our free self-paced online courses at:
- Goods and services tax (GST)External Link
- Essentials to strengthen your small businessExternal Link.
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- contact your tax professional to obtain advice specific to your business needs.