Starting in April 2025, the Australian Taxation Office (ATO) is gradually shifting some small businesses from quarterly to monthly GST reporting. If you’ve been notified or think this might apply to you, now’s the time to understand what’s changing, why it matters, and how to prepare.
This guide breaks it down in plain language so you can stay compliant, avoid penalties, and keep your business running smoothly.
1. Why Is Monthly GST Reporting Being Introduced?
The ATO has found that more frequent reporting:
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Helps small businesses stay on top of their finances
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Reduces large, surprise tax bills
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Improves compliance and lowers the risk of late BAS lodgements
They’re now encouraging more small businesses—especially those who frequently fall behind on BAS lodgements—to move to monthly reporting.
2. Who Will Be Affected?
You may be required to switch to monthly GST reporting if:
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Your GST turnover exceeds $20 million, or
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You’ve had past issues with on-time BAS lodgement or payment, or
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You’re a newly registered business flagged as high risk, or
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You voluntarily register for monthly reporting to better manage cash flow
💡 Tip: Check your ATO correspondence or log in to your ATO Business Portal to see if you’re being moved to monthly GST.
3. What Does Monthly Reporting Involve?
If you’re used to lodging your Business Activity Statement (BAS) every quarter, here’s what changes:
| Task | Quarterly BAS | Monthly BAS |
|---|---|---|
| Reporting GST | Every 3 months | Every month |
| Due Date | 28 days after quarter | 21 days after each month |
| Frequency of PAYG | Still quarterly unless notified | May increase in some cases |
| Cash Flow Impact | Less frequent payments | Smaller, more regular payments |
4. Benefits of Monthly GST Reporting
While it might sound like more admin, monthly GST reporting actually offers some big advantages:
✅ Improved Cash Flow Management
You’re paying smaller amounts more frequently, which helps smooth out expenses rather than saving up for a big quarterly payment.
✅ Better Financial Visibility
Staying on top of your accounts every month gives you a clearer view of your finances—handy for planning and growth.
✅ Reduced Risk of Penalties
Frequent reporting means fewer surprises and less likelihood of missed deadlines.
5. Challenges to Be Aware Of
Of course, monthly reporting does bring some extra responsibility:
❌ More Frequent Paperwork
You’ll need to reconcile your accounts and prepare BAS monthly.
❌ Tighter Timeframes
Monthly BAS is due 21 days after the end of the month—less time to organise paperwork.
💡 Solution: Use cloud accounting tools like Xero, MYOB, or QuickBooks to automate GST tracking and report preparation.
6. How to Prepare for Monthly Reporting
🗂️ Step 1: Set Up a Regular Bookkeeping Schedule
Rather than leaving your books until the end of the quarter, set a weekly or fortnightly schedule to stay on top of things.
💻 Step 2: Use Automation Where Possible
Connect your bank feeds, automate expense categorisation, and use GST tracking features in your accounting software.
📅 Step 3: Mark Your BAS Deadlines
Add reminders for the 21st of each month to avoid late lodgement penalties.
🤝 Step 4: Work with a Registered BAS or Tax Agent
If you’re not confident lodging monthly BAS yourself, a Penrith accountant can handle it for you and ensure it’s all correct.
7. Can You Stay on Quarterly Reporting?
If you’ve been invited—but not required—to switch, you may still be able to remain on quarterly reporting. That said, some businesses voluntarily switch to monthly if:
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They want to claim GST refunds faster, or
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They prefer to manage payments in smaller chunks
A professional can help you decide what’s best for your business.
8. What If You Miss a BAS Lodgement?
Missed BAS lodgements can lead to:
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Late lodgement penalties
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Interest charges
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Difficulty with ATO arrangements and grants
If you’re worried about falling behind, monthly reporting could help keep you accountable—and a good Penrith accountant can help you stay organised.
Conclusion
Monthly GST reporting might sound like more work, but with the right tools and systems in place, it can make life easier. It helps with cash flow, compliance, and gives you better oversight of your finances.
If you’re unsure whether you should switch or need help preparing, speak to Carmody Accounting—your local accountant in Penrith. We’ll help you manage the change and keep your BAS lodgements stress-free.
