ATO's new focus for small business

The ATO is currently focusing on the following 'specific risk areas', where it is concerned "small businesses are getting it wrong":

• Contractors omitting income — with a focus on data matching to ensure all income is reported.

• Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025.

The ATO will also continue its focus on non-commercial business losses, small business capital gains tax ('CGT') concessions, business income that is not personal income, incorrect claims for 'small business boosts', GST registration and income of taxi, limousine and ride-sourcing services.

Please note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.