What Is the Tax Office Up To Now in Regard to Small Business?

What Is the Tax Office Up To Now in Regard to Small Business?

As of mid-2025, the Australian Taxation Office (ATO) has intensified its focus on small businesses, aiming to improve compliance and ensure fair competition. Here's what small business owners need to know:

📊 New ATO Focus Areas for Small Business

The ATO has identified several key areas where small businesses often make errors or may be underreporting:news

• Contractors Omitted Income: Particularly in industries like construction, cleaning, and IT, the ATO is using data matching to detect unreported income.news

• Quarterly to Monthly GST Reporting: Businesses with a history of late or incorrect reporting may be moved to monthly GST reporting starting 1 April 2025. news+2Australian Taxation Office+2Australian Taxation Office+2

• Small Business Concessions: The ATO is scrutinizing claims related to capital gains tax concessions and non-commercial business losses.Australian Taxation Office+2news+2Australian Taxation Office+2

• GST Registration & Ride-Sourcing Services: Special attention is being given to the income and GST obligations of taxi, limousine, and ride-sourcing services. news+2Australian Taxation Office+2Australian Taxation Office+2

The ATO encourages businesses to self-amend any errors to avoid penalties.Australian Taxation Office+2news+2Australian Taxation Office+2

💰 Tackling Tax Debt and Supporting Restructuring

With over $35 billion in outstanding tax debts, the ATO is becoming stricter on repayment and restructuring plans. Small businesses are increasingly opting for Small Business Restructuring (SBR) plans, which now account for nearly 20% of insolvency appointments. However, the ATO is tightening approval criteria, requiring higher repayment offers and better compliance history. news+2The Australian+2couriermail+2couriermail+1The Australian+1

🧾 Instant Asset Write-Off Extended

The $20,000 instant asset write-off has been extended until 30 June 2025 for small businesses with an aggregated turnover of less than $10 million. This allows businesses to immediately deduct the cost of eligible depreciating assets costing less than $20,000. Australian Taxation Office

🧠 Free Online Learning for Small Businesses

The ATO has launched a free online learning platform, "Essentials to Strengthen Your Small Business," offering over 20 short courses on tax, superannuation, and business management. These courses are designed to help small business owners enhance their knowledge and improve compliance. Australian Taxation Office+6Australian Taxation Office+6Australian Taxation Office+6

🧾 Updated Industry Benchmarks

The ATO has released updated financial benchmarks for 100 industries, allowing small business owners to compare their performance against industry averages. These benchmarks can help identify areas for improvement and ensure businesses remain within acceptable ranges to avoid attracting the ATO's attention. Australian Taxation Office

✅ Tips for Small Business Owners

• Stay Informed: Regularly check the ATO's Small Business Newsroom for updates. Australian Taxation Office+6Australian Taxation Office+6Australian Taxation Office+6

• Maintain Accurate Records: Use digital tools to keep track of income and expenses.news

• Seek Professional Advice: Consult with a registered tax professional to ensure compliance.Australian Taxation Office+3Australian Taxation Office+3Australian Taxation Office+3

• Utilize ATO Resources: Take advantage of the ATO's learning platform and benchmarks.Australian Taxation Office

By staying proactive and informed, small business owners can navigate the evolving tax landscape and ensure their businesses remain compliant and competitive.