The Australian Taxation Office (ATO) has kicked off 2025 by announcing its key focus areas for small businesses. In this Tax Alert March 2025, the ATO has also signalled a tougher stance on super guarantee (SG) compliance and GST fraud. Here’s a roundup of the latest tax news.

The regulator has announced its key small business tax issues for this financial year. The three main areas the ATO is focusing on are:

  • Deductions and concessions, including non-commercial losses and small business CGT concessions.
  • Incorrect use of business income, such as using business money and assets for personal benefit.
  • Businesses operating outside the system, particularly GST registration and undeclared income in taxi, limousine, and ride-sourcing services.

The ATO plans to review and publish quarterly focus themes to help small businesses identify and address issues in these areas.

GST fraud warning

The ATO-led Serious Financial Crime Taskforce is warning businesses against attempting to cheat the tax and super system through GST fraud, stating that it is actively monitoring for potentially fraudulent activities. i

New information shared between government agencies reveals that some businesses are using complex financial arrangements to disguise transactions to obtain larger GST refunds.

These arrangements include:

  • False invoicing between related entities.
  • Deliberately misaligning GST accounting methods across a group.
  • Duplicating GST credit claims.
  • Claiming GST credits for fake purchases.

Tax penalties increase

The cost of penalty units imposed by the ATO for failing to meet tax obligations has increased again, rising from $313 to $330 per unit. ii

The new rate applies to infringements occurring on or after 7 November 2024. For example, the penalty for failing to keep or retain tax records as required is 20 penalty units (20 × $330 = $6,600).

Other penalties apply to:

  • Missed or late super guarantee (SG) payments.
  • Individual and corporate SMSF trustees.
  • GST obligations when buying or selling new residential properties.

GST and fuel tax credit time limits

The ATO is encouraging businesses eligible for GST and fuel tax credits to claim their credits within four years of the due date of the earliest Business Activity Statement (BAS) where a claim could have been made.

Once the time limit passes, you are no longer eligible to claim the credits. Lodging an amendment to an original assessment or requesting a private ruling does not count as making a claim.

Old credits can still be claimed in your next BAS (provided it is within the eligibility period) by:

  • Lodging a revised BAS for the original period via ATO Online Services, or
  • Lodging a valid objection within the time limit to preserve your entitlement to the credits.

Change to myGovID

The Australian Government’s digital ID app, myGovID, which is used to access government services, has been renamed myID.

The app provides secure access to government services using your existing login details (including your email address), with the identity strength remaining unchanged. Existing app users should find the app automatically updated on their smart device, or it can be manually updated via the Apple App Store or Google Play.

The ATO is warning users that scammers are attempting to take advantage of the name change. Any message or email asking you to set up a new myID or reconfirm your details is a scam.

By taking proactive measures, staying informed, and seeking professional financial advice, you can navigate the evolving landscape of personal and business tax compliance with confidence. Our financial advisers can work with you to understand your tax situation and safeguard your financial wellbeing.

 

Sources

i Taskforce issues GST fraud warning to dishonest businesses | Australian Taxation Office

ii Penalty units | Australian Taxation Office

iii Our SG compliance results are here | Australian Taxation Office