Will you be changed to monthly BAS reporting?

If you're a small business owner, there’s a major GST reporting change on the horizon that could directly affect how you manage your cash flow and compliance.

Starting 1 April 2025, the Australian Taxation Office will begin requiring some small businesses with compliance issues—like late BAS lodgements or incorrect GST reporting—to move from quarterly to monthly GST reporting.

This change isn't based on your turnover. It’s based on your compliance history.

Why the Change?

The ATO says monthly reporting can help improve your cash flow by giving you quicker access to GST refunds and a more regular view of what you owe.

But for many small businesses, this move will feel more like a penalty than a perk.

If your business is flagged, you’ll now need to:

• Lodge BAS every month

• Pay GST more frequently

• Potentially adjust your cash flow, budgeting and supplier payment terms

This is a big shift—especially for those who already find it hard to keep up with admin and paperwork.

What This Means for Your Business

If you’ve had issues with BAS lodgments in the past, here’s what you’ll likely need to prepare for:

• More frequent reporting (12 times a year instead of 4)

• Monthly GST payments, which could strain cash flow

• Extra time or resources spent on bookkeeping or accounting

• Tighter control over day-to-day financials

For businesses that don’t use a bookkeeper or accountant regularly, this change could mean more time away from running your business and more stress trying to stay compliant.

What You Can Do Now

Here are a few steps you can take today to stay ahead:

1. Check your BAS lodgement history – are you up to date?

2. Fix any overdue lodgements or errors before 1 April 2025.

3. Talk to your bookkeeper to review your compliance position.

4. Start planning for monthly cash flow if you think you could be affected.

5. Stay alert for any communication from the ATO about changes to your GST reporting frequency.

This change might not impact all small businesses—but if you’ve had any issues with BAS compliance, it’s a good idea to get on the front foot now. More frequent reporting means more admin, but being proactive can help you avoid surprises and keep your business running smoothly.

Need help? Reach out to your bookkeeper or BAS agent sooner rather than later—they’ll be your best support through this change.

If you need advice or assistance, get in touch today, and follow us for more tips.

Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.