Why we can change your GST reporting
We'll direct you to move to monthly GST reporting if we have determined that any of the following apply:
- Your business meets the tax period turnover threshold.
- You'll be running your business in Australia for less than 3 months.
- You have a history of failing to comply with your tax obligations.
Examples of failing to comply with your tax obligations include:
- lodging or paying late
- failing to lodge or pay
- reporting your tax obligations incorrectly.
We'll notify you in writing if we move you to monthly GST reporting. You'll then need to calculate, report and pay your GST on a monthly basis on your BAS.
Effect on other reporting obligations
If you have wine equalisation tax (WET), luxury car tax (LCT) or fuel tax credit obligations, you'll also need to report these amounts each month in your BAS. This change will occur automatically as part of changing your GST reporting cycle.
You can choose to align other reporting and payment obligations, for example pay as you go (PAYG) withholding.
If you disagree with the change
If you disagree with the change, you can lodge an objection within 60 days from when you were notified of our decision.
Lodge and pay on time
Make sure you lodge and pay your BAS in full and on time to avoid a failure to lodge on time penalty and general interest charge.
If you're worried you won't be able to lodge and pay by the due date, before the due date either:
- contact your registered tax professional
- find out about the support options available to you.
Requesting a change to your GST reporting cycle
If a determination is made, you must report your GST monthly for a minimum of 12 months. To revert to quarterly or annual reporting, you'll need to request that the determination be revoked.
You can request that the determination be revoked by contacting your registered tax agent or contacting us. We’ll only approve requests if we’re satisfied that the grounds for the determination no longer apply. For more information, see Why we can change your GST reporting cycle.
Example: Change to monthly reporting
Jack has been running a small business for over 5 years and his turnover ranged from $350,000 to $550,000 per year. He uses a digital accounting software package for BAS preparation. His tax agent has set it up for quarterly GST reporting.
With the demands of running a busy business, Jack has developed a pattern of lodging and paying late. Over the past 18 months, Jack has fallen behind and stopped engaging with the ATO. At this point:
- he hasn't lodged a number of past BAS
- some of his previous BAS were lodged late
- his last business income tax return has not been lodged
- he has an overdue tax debt
- he has defaulted on the payment plans he had set up to pay the overdue tax debt.
Jack receives a letter from us advising him that he will now have to report and pay his GST monthly. He understands from the letter that this decision is based on his history of failing to comply with his tax obligations.
Jack decides to bring his lodgments up to date and enters into a new payment plan for the overdue debt.
This marks a turning point in his business. Jack finds it easier to stay on track with accurate, up-to-date record-keeping, which helps him make better business decisions. After the 12-month period, Jack saw the benefits of monthly reporting and decided to keep his reporting cycle as monthly.