{"id":101888,"date":"2025-02-28T13:25:00","date_gmt":"2025-02-28T02:25:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=101888"},"modified":"2025-02-28T13:24:52","modified_gmt":"2025-02-28T02:24:52","slug":"atos-new-gst-rule-could-cost-small-businesses-thousands-heres-why","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/atos-new-gst-rule-could-cost-small-businesses-thousands-heres-why\/","title":{"rendered":"ATO\u2019s New GST Rule Could Cost Small Businesses Thousands \u2013 Here\u2019s Why"},"content":{"rendered":"\n<p><strong>Small business owners <\/strong>in Australia<strong> <\/strong>will soon face significant changes in how they report their Business Activity Statements<strong> (BAS)<\/strong>. <\/p>\n\n\n\n<p>The <strong>Australian Taxation Office (ATO)<\/strong> has quietly announced that businesses with a history of late payments, incorrect reporting, or failure to lodge BAS on time will be required to submit their report<strong>s every month <\/strong>instead of quarterly.<\/p>\n\n\n\n<p>This change, set to take effect on <strong>April 1<\/strong>, is expected to impact a significant portion of small businesses, including <strong>contractors, self-employed individuals, and rideshare drivers<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Increased Compliance for Non-compliant Businesses<\/h2>\n\n\n\n<p>Under the new rules, most businesses earning under <strong>$20 million per year<\/strong> will continue to report their BAS quarterly. However, those who have failed to meet <strong>BAS deadlines, made incorrect GST reports,<\/strong> or<strong> <a href=\"https:\/\/en.econostrum.info\/au\/thousands-of-australians-qualify-for-1000-disaster-payments\/\" target=\"_blank\" data-type=\"post\" data-id=\"101015\" rel=\"noreferrer noopener\">missed payments<\/a><\/strong> will be required to <strong>report monthly<\/strong>.<\/p>\n\n\n\n<p>According to <strong>Belinda Raso<\/strong>, director of Tax Invest Accounting, the change could impact as much as 30% of her clients, forcing them to spend additional time and money on compliance.<\/p>\n\n\n\n<p><em>&#8220;It doesn&#8217;t seem very fair that they&#8217;re to be hit like this, especially in a cost-of-living crisis,&#8221;<\/em> she told Yahoo Finance.<\/p>\n\n\n\n<p>For businesses managing BAS themselves, the shift could mean up to <strong>four hours of extra work <\/strong>every reporting cycle. If they hire a tax or BAS agent, they will face additional service fees.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-tiktok wp-block-embed-tiktok\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"tiktok-embed\" cite=\"https:\/\/www.tiktok.com\/@taxinvestaccounting\/video\/7475608298910256402\" data-video-id=\"7475608298910256402\" data-embed-from=\"oembed\" style=\"max-width:605px; min-width:325px;\"> <section> <a target=\"_blank\" title=\"@taxinvestaccounting\" href=\"https:\/\/www.tiktok.com\/@taxinvestaccounting?refer=embed\" rel=\"noopener\">@taxinvestaccounting<\/a> <p>\ud83d\udea8BAS Changes from April!\ud83d\udea8<a title=\"fyp\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/fyp?refer=embed\" rel=\"noopener\">#fyp<\/a> <a title=\"taxagent\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/taxagent?refer=embed\" rel=\"noopener\">#taxagent<\/a> <a title=\"tax\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/tax?refer=embed\" rel=\"noopener\">#tax<\/a> <a title=\"taxadvice\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/taxadvice?refer=embed\" rel=\"noopener\">#taxadvice<\/a> <a title=\"australia\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/australia?refer=embed\" rel=\"noopener\">#australia<\/a> <a title=\"aussietax\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/aussietax?refer=embed\" rel=\"noopener\">#aussietax<\/a> <a title=\"foryoupage\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/foryoupage?refer=embed\" rel=\"noopener\">#foryoupage<\/a> <a title=\"foryou\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/foryou?refer=embed\" rel=\"noopener\">#foryou<\/a> <a title=\"aussie\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/aussie?refer=embed\" rel=\"noopener\">#aussie<\/a> <a title=\"taxtips\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/taxtips?refer=embed\" rel=\"noopener\">#taxtips<\/a> <\/p> <a target=\"_blank\" title=\"\u266c original sound - taxinvestaccounting\" href=\"https:\/\/www.tiktok.com\/music\/original-sound-7475608528171207441?refer=embed\" rel=\"noopener\">\u266c original sound &#8211; taxinvestaccounting<\/a> <\/section> <\/blockquote> <script async src=\"https:\/\/www.tiktok.com\/embed.js\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The ATO\u2019s Justification<\/h2>\n\n\n\n<p>The ATO argues that businesses affected by the change have <strong>a history of non-compliance<\/strong> and that moving to monthly reporting will help them develop better financial habits.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The move is designed to support you to meet your obligations and to embed good business habits into your business by better aligning reporting with your reconciliation processes,&#8221;<\/em> an ATO spokesperson said.<\/p>\n<\/blockquote>\n\n\n\n<p>ATO Commissioner <strong>Rob Heferen<\/strong> emphasized that small businesses owe <strong>$24 billion in BAS-related debt<\/strong> and that the new system aims to help businesses stay on top of their financial obligations.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We are seeing an increasing number of businesses fall behind on these types of payments, from which point it is very difficult for businesses to get back on top of their obligations and remain viable,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Concerns over the Lack of Consultation<\/h2>\n\n\n\n<p>Critics argue that the ATO has failed to consult small business owners before implementing the change. <strong>Belinda Raso<\/strong> believes the shift should have been introduced gradually, allowing businesses time to adjust.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Why aren&#8217;t we actually working with those businesses and saying to them, &#8216;Just for a 12-month period, make sure that your BAS is on time\u2019?&#8221;<\/em> she questioned.<\/p>\n<\/blockquote>\n\n\n\n<p>There are also concerns that this change is just the beginning. Some fear the ATO could eventually move all small businesses to monthly BAS reporting, regardless of their compliance history.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Calls for GST Threshold Review<\/h2>\n\n\n\n<p>Another major concern is the <strong>$75,000 annual <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/gst-excise-and-indirect-taxes\/gst\/registering-for-gst\" target=\"_blank\" rel=\"noreferrer noopener\">GST registration threshold<\/a><\/strong>, which has remained unchanged since <strong>2007<\/strong>.<\/p>\n\n\n\n<p>Raso argues that this figure is outdated and should be raised to reflect inflation.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;In today&#8217;s economy, that figure would be closer to $120,000,&#8221;<\/em> she said. <em>&#8220;$75,000 per year is nothing. It\u2019s not enough for you to live on.&#8221;<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>Businesses affected by the change will receive formal <strong>ATO notifications <\/strong>starting next month. While the agency insists that monthly BAS reporting will simplify tax compliance, small business owners remain skeptical about the benefits.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small business owners are in for a rude awakening as the ATO quietly rolls out a major tax reporting change. Thousands could soon be forced into stricter compliance, adding more costs and paperwork every month. Many are calling it unfair, but the ATO insists it\u2019s necessary\u2014here\u2019s what\u2019s really happening.<\/p>\n","protected":false},"author":5,"featured_media":101899,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-101888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=101888"}],"version-history":[{"count":12,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101888\/revisions"}],"predecessor-version":[{"id":101902,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101888\/revisions\/101902"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/101899"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=101888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=101888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=101888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}