Camden Professionals

How to Lodge a Tax Return With Multiple Income Sources in Australia

Having more than one source of income can make your Australian tax return more complicated.You might have a full-time job and a side business, work two jobs, switch from employee to contractor, earn FIFO income or receive money from overseas.

The basic rule is simple: you generally report all relevant income in your individual tax return.

The challenge is making sure each type of income is reported correctly, deductions are allocated properly and enough tax has been paid throughout the year. Here’s what to know if you have multiple income sources.

Do You Need a Separate Tax Return for Each Income Source?

No.

If you have several jobs or income streams, you generally report them in the same individual tax return.

This could include:

PAYG salary and wages
ABN or sole trader income
Investment income
Rental income
Government payments
Foreign income
Other assessable income

Your total taxable income is then used to determine your overall tax liability.

The important point is that different income sources can have different tax and deduction rules.

Working Two or More Jobs

Having two jobs is one of the most common reasons people end up with an unexpected tax bill.The problem is that each employer generally calculates PAYG withholding based on the income they pay you.They do not necessarily know what you are earning from another employer.

Watch the Tax-Free Threshold

Australian residents can generally claim the tax-free threshold from only one employer at a time. If you claim it from more than one employer while working both jobs, insufficient tax may be withheld during the year.

If you have two jobs at the same time:

Check which employer is claiming your tax-free threshold.
Review your PAYG withholding if your circumstances change.
Consider asking your employer to deduct an additional amount from your pay if required.

PAYG Employment Plus ABN Income

Another common situation is having a regular job while earning extra money as a contractor or sole trader.

For example, you might:

Work full-time and freelance on weekends
Consult outside your normal employment
Drive for a platform
Run an online business
Undertake contract work using an ABN

Your employment income and business income are reported in your tax return, but they are treated differently.Your PAYG employer generally withholds tax from your wages.With ABN income, you may receive payments without tax being withheld.This can result in a tax bill at the end of the financial year.

Put Money Aside for Tax

If your ABN clients are not withholding tax, consider putting part of each payment aside to cover your eventual tax liability.

The amount you need will depend on:

Your total income
Your deductions
Your individual circumstances

Do not rely on a fixed percentage, as everyone’s tax position is different.

Keep Business and Employment Deductions Separate

One of the biggest mistakes with multiple income sources is claiming expenses against the wrong type of income.Generally, expenses must have a connection to the income they help you earn.

For example:

An expense relating solely to your contracting work may be a business deduction.
An eligible work expense relating to your employment may be a work-related deduction.
An expense used for both purposes may need to be apportioned.

Keep separate records for your employment and business activities.Do not claim an expense simply because you paid for it while working.The expense must meet the relevant deduction rules and, where required, be supported by records.

Don’t Forget Personal Services Income (PSI)

If your ABN income mainly comes from your personal skills or labour, the Personal Services Income (PSI) rules may apply. PSI can affect which deductions you can claim and how your income is treated.

This can be particularly relevant to:

Consultants
IT professionals
Engineers
Other skilled workers

If most of your income comes from your own personal efforts, check whether the PSI rules apply before lodging your return.

Do You Need to Register for GST?

If you are operating a business or working as a sole trader, GST may also need to be considered.The GST registration threshold is generally $75,000 in GST turnover for most businesses. Importantly, GST turnover relates to your business activities. Your PAYG salary from employment is not simply added to your business turnover when determining whether you have crossed the GST threshold. If you are approaching or exceeding the threshold, review your GST registration obligations.

Don’t Wait Until Tax Time to Deal With GST

GST, BAS and income tax are separate obligations and need to be managed throughout the year. Keeping accurate records can help prevent unexpected tax issues.

If You Changed From Employee to Contractor

Switching from employment to contracting during the financial year can create an unusual tax situation.

During your employment period:

Your employer generally withheld PAYG tax.

After becoming a contractor:

You may have received payments without tax being withheld.

Your tax return needs to include both periods.

This can result in an unexpected tax bill because tax was automatically withheld during your employment period but may not have been withheld from your contracting income.

Review Your Position When Moving Into Contracting

When moving into contracting, review:

Expected annual income
Business expenses
GST position
Tax obligations

Early planning can help avoid unexpected liabilities.

FIFO and Remote Workers

FIFO workers can also have more complicated tax returns, particularly if they have investment income, side businesses or other income sources. One common misconception is that working at a remote mine or worksite automatically makes you eligible for tax benefits.

This is not always the case.

Eligibility generally depends on:

Where your usual place of residence is
How long you lived there
Whether you meet specific requirements

Keep evidence of:

Your usual residence
Dates you lived there
Employment arrangements

Travel and accommodation deductions also depend on your circumstances and the nature of the expense.

Do not assume that all FIFO travel costs are automatically deductible.

What If You Earned Income From Overseas?

Australian tax residency is extremely important when you have foreign income.

Australian tax residents are generally taxed on their worldwide income.

This may include:

Foreign salary
Interest
Dividends
Rental income
Other assessable foreign income

Foreign income generally needs to be converted into Australian dollars for Australian tax purposes.

What If You Already Paid Tax Overseas?

You may be entitled to a foreign income tax offset (FITO) for eligible foreign tax paid.

Generally:

The foreign tax must have actually been paid.
The related income or gain must be included in your Australian assessable income.

Keep your overseas tax statements and supporting documents. Do not assume paying tax overseas means you do not need to declare the income in Australia. Your tax residency and relevant tax treaties can affect the outcome.

Common Mistakes With Multiple Income Sources

When your return includes several types of income, watch out for these common mistakes.

Forgetting an Income Source

Make a list of every:

Employer
Business activity
Investment
Overseas income source

before lodging your return.

Claiming the Tax-Free Threshold Twice.

If you are working multiple jobs simultaneously, check which employer is claiming it.

Spending All Your ABN Income

Remember that tax may not have been withheld from contractor payments.

Mixing Business and Personal Expenses

Keep business records separate and only claim expenses that meet the relevant rules.

Ignoring GST

If you are operating a business and approaching the GST threshold, review your registration obligations early.

Assuming FIFO Means Automatic Tax Benefits

Working remotely or at a mine site does not automatically qualify you for every tax deduction or offset.

Forgetting Foreign Income

Australian tax residents generally need to declare worldwide income, even if the money remains overseas.

Documents to Have Ready

Before lodging your tax return, gather:

Employment Income

Income statements
PAYG payment information
Work-related expense records
Details of any allowances or reimbursements

ABN or Business Income

Invoices and payment records
Business expenses and receipts
BAS records
PAYG instalment information

Investments

Bank interest records
Dividend statements
Managed fund statements
Rental property records
Capital gains and losses information

Foreign Income

Overseas payslips or income statements
Foreign tax records
Exchange-rate information
Evidence of foreign tax paid

FIFO or Remote Work

Employment records
Residence information
Allowance details
Relevant travel and accommodation records

How to Make Your Tax Return Easier

If you have multiple income sources, do not wait until tax time to organise everything.Keep records throughout the year.

Set up separate folders for:

Employment income
Business income
Investments
Foreign income

Track ABN income separately. Record every payment received and every business expense. Check your PAYG withholding if your income changes significantly. Review your tax position before 30 June. If you are expecting a large tax bill, early planning may give you more options.

Get Advice When Things Become Complicated

Multiple income sources are not necessarily a problem.

However, the interaction between different types of income, deductions, GST and tax offsets can become complex.

If your situation includes:

Contracting
Foreign income
Investment properties
Trusts
Significant business income

professional tax advice can help ensure everything is reported correctly.

The Bottom Line

Having multiple income sources does not mean you need multiple tax returns. Your relevant income is generally brought together in your individual return, but how each income stream is treated can vary considerably.

The key is to:

Keep good records
Understand your PAYG withholding
Separate business and employment expenses
Check your GST obligations
Make sure foreign income is reported correctly

A little planning throughout the year can make tax time much easier and help reduce the risk of an unexpected tax bill.

Frequently Asked Questions

Do I need a separate tax return for each job?

No. Multiple employment income sources are generally reported in the same individual tax return.

Can I claim the tax-free threshold with two employers?

Generally, you should only claim the tax-free threshold from one employer at a time when working multiple jobs simultaneously.

Do I pay tax on ABN income?

Yes. Business or contracting income generally needs to be declared, with tax calculated as part of your overall taxable income.

Do I need GST registration if I have an ABN?

Not automatically. GST registration is generally required once your business reaches the applicable $75,000 GST turnover threshold, subject to the relevant rules and exceptions.

Do Australian residents have to declare foreign income?

Generally, yes. Australian tax residents are generally taxed on worldwide income, subject to specific exceptions.

Can I claim tax on income already taxed overseas?

You may be able to claim a foreign income tax offset if you meet the eligibility requirements.

How Can We Help?

If you have any questions or would like further information, please contact Camden Professionals on:

Phone: 08 9221 5522
Email: info@camdenprofessionals.com.au

You can also arrange a meeting so we can discuss your requirements in more detail.

General Information Disclaimer

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any person. Any advice contained on this page and on this website is General Advice and does not consider any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals and/or Investax Group, its officers, representatives, employees, and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Camden Professionals

How to Maximise GST Credits, Fuel Tax Credits and Your BAS

As the 2026 financial year gains momentum, now is the time for Australian business owners to review their Business Activity Statements and ensure they are not missing out on valuable GST credits and fuel tax credits.

With ongoing cost pressures, cashflow constraints and increased compliance scrutiny, leading commentary in the Australian Financial Review continues to highlight the importance of disciplined financial management and working capital optimisation. One of the simplest ways to improve business cashflow is to claim every credit you are legally entitled to, on time and correctly.

Understanding GST Credits: Claim What You’re Entitled To

What Are GST Credits?

GST credits, also known as input tax credits, are the GST amounts you have paid on business purchases that you can claim back through your Business Activity Statement.

If you purchase goods or services for your business and the price includes GST, you can generally claim that GST amount as a credit to reduce the amount you owe to the Australian Taxation Office.

For many businesses, these credits represent a significant and ongoing cashflow benefit.

Who Can Claim GST Credits?

To claim GST credits, you must:

Be registered for GST
Purchase goods or services for business use
Have been charged GST by the supplier
Hold a valid tax invoice for purchases over $82.50 including GST

You cannot claim GST credits for personal expenses or purchases that are not directly related to running your business.

The Four-Year Time Limit: Don’t Let Credits Expire

A critical but often overlooked rule is the four-year time limit. GST credits expire four years after the due date of the BAS for the period in which you first could have claimed them. Once that window closes, the entitlement is lost. Reviewing historical BAS lodgements within the four-year window is a practical way to strengthen cashflow without increasing revenue. A structured review of prior periods can uncover missed credits and correct underclaims.

Fuel Tax Credits: A Powerful but Underused Benefit

What Are Fuel Tax Credits?

Fuel tax credits allow eligible businesses to claim back the fuel tax (excise) included in the price of fuel used in business activities.

If your business uses fuel in eligible vehicles, machinery or equipment, you may be able to claim credits on your BAS.

This can be particularly valuable for:

Construction businesses
Transport operators
Primary producers
Mining and heavy industry businesses
Businesses using generators or heavy equipment

Eligibility and Registration Requirements

To claim fuel tax credits, you must:

Be registered for GST
Register specifically for fuel tax credits
Use eligible fuel for eligible business activities

Not all fuel use qualifies.

For example:

Fuel used in passenger vehicles or light vehicles travelling on public roads is generally not eligible due to the road user charge.
Heavy vehicles and off-road machinery may qualify at different indexed rates.

Fuel tax credit rates are indexed twice a year and vary depending on the type of fuel and activity. Given the complexity, professional advice is often critical to ensure correct calculation and compliance.

The Four-Year Rule Also Applies

Like GST credits, fuel tax credits are also subject to a four-year time limit from the BAS due date for the period when the credit could first have been claimed.Failing to review eligibility within this timeframe can result in permanently lost refunds.

BAS Accuracy and Cashflow Strategy in 2026

Recent business coverage in the Australian Financial Review has focused heavily on working capital management, rising operating costs and the importance of strong governance practices. Accurate BAS preparation is a core part of that governance.

Your BAS is not simply a compliance form. It is a financial checkpoint that reflects:

GST collected
GST paid
PAYG withholding
PAYG instalments
Fuel tax credits

Treating BAS lodgement as a strategic cashflow review rather than a last-minute compliance task can materially improve financial outcomes.

Should You Amend a Past BAS or Claim Now?

If you identify missed GST or fuel tax credits, you may be able to:

Correct the error in a later BAS, subject to correction limits
Lodge an amendment for the original BAS period

The appropriate approach depends on the size of the adjustment and ATO correction thresholds.

A registered tax agent can assess:

Whether your fuel use qualifies
Which credit rates apply
Whether amendments are required
How to minimise compliance risk

Start the Year Right: Review Before It’s Too Late

Do not leave BAS reviews or credit assessments until deadlines are looming.

By proactively reviewing:

Historical GST credits
Fuel tax credit eligibility
Tax invoices and documentation
Prior BAS lodgements within the four-year window

You may unlock cashflow that is already sitting within your business records.In a tighter economic environment, optimising entitlements can be just as valuable as increasing revenue.

Conclusion: Protect Your Cashflow and Stay Compliant

As 2026 unfolds, disciplined BAS management is more important than ever. GST credits and fuel tax credits are legitimate entitlements designed to support Australian businesses, but they come with strict eligibility rules and time limits.

By reviewing your position early, ensuring documentation is in order and seeking professional advice where necessary, you can strengthen cashflow, reduce compliance risk and avoid leaving money with the ATO that rightfully belongs to your business.

A proactive BAS strategy is not just about compliance. It is about smart financial management.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Camden Professionals

Understanding BAS Late Penalties and How to Avoid Them

Falling behind on your Business Activity Statement (BAS) lodgements can feel overwhelming — particularly when the Australian Taxation Office (ATO) begins to apply penalties and interest. For small business owners already juggling cash flow, a missed BAS deadline or unpaid GST can snowball into a bigger financial problem if not addressed quickly.

The good news? The ATO offers pathways to help businesses catch up and, in some cases, avoid or reduce penalties. This guide explains how BAS late penalties work, what interest charges you might face, and what steps you can take to stay compliant.

What Happens if You Lodge Your BAS Late?

When your BAS is lodged after the due date, the ATO may apply a Failure to Lodge (FTL) penalty. This penalty is calculated in penalty units — and the longer the delay, the more units you’ll owe.

1 penalty unit is applied for every 28-day period (or part thereof) that your BAS is overdue.
A maximum of 5 penalty units can be applied per late BAS.

As of July 2025, the value of one penalty unit is $330. That means a maximum penalty of $1,650 could be applied for a single late BAS.

These penalties can quickly eat into operating capital — funds better spent on growth or wages. Staying on top of lodgement dates is a simple but critical part of financial health.

Interest Charges on Unpaid BAS Amounts

Even if you’ve lodged your BAS on time, if you haven’t paid the amount owing, the ATO will charge General Interest Charge (GIC) on the outstanding balance.

GIC is calculated daily and compounds over time.
The interest rate typically sits around 8–10% per annum, although this is adjusted quarterly. For example, the GIC rate for the September 2025 quarter is 10.46% annually or 0.02865% daily.

This interest can grow quickly, especially if you’re experiencing cash flow difficulties.

The ATO is strict when it comes to GIC — remissions are only considered in very limited situations, such as:

Natural disasters
Serious illness
Systemic issues beyond your control (e.g., ATO system outages)

Can You Apply for Penalty or Interest Remissions?

Yes. The ATO allows businesses to request a remission of penalties or interest charges — but you’ll need to provide a reasonable explanation and, ideally, have a good lodgement history.

The ATO will consider:

Serious illness or natural disasters
Technology issues that prevented timely lodgement
Genuine mistakes where you acted quickly to fix the problem
Past compliance (a clean record increases your chances)

You can apply for a remission:

Via the ATO Business Portal
By calling the ATO directly
Through your registered tax or BAS agent

What to Do If You’re Behind on Your BAS

If you’ve missed a BAS deadline, act fast. Here’s what you should do:

Lodge your BAS ASAP, even if you can’t pay the full amount right away.
Contact the ATO to explain your situation — you may be eligible for a payment plan.
Keep the lines of communication open. Ignoring ATO notices can result in escalated penalties or compliance action.
Seek help from your accountant or BAS agent. They can advise on your options and may be able to negotiate on your behalf.

Tips to Avoid BAS Penalties

To stay compliant and protect your business from financial stress:

Use accounting software that sends reminders before BAS is due (e.g., Xero, MYOB).
Mark BAS due dates in your calendar — generally the 28th day after the end of each quarter.
Outsource to a BAS agent or bookkeeper if lodging yourself is too time-consuming.
Keep cash flow reserves for upcoming tax obligations.
Stay informed by subscribing to ATO small business newsletters or updates.

The ATO takes BAS lodgement and payment seriously — and late penalties or interest can impact your bottom line. But small businesses aren’t without options. If you fall behind:

Lodge as soon as possible
Contact the ATO for a payment arrangement
Apply for penalty remissions if there are valid reasons

Staying on top of your BAS is not just about avoiding fines — it’s about maintaining control of your business finances and reducing stress.

Useful Resources:

Source: ATO

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Made a mistake charging GST?

As a small business owner, getting your GST right is crucial. However, mistakes can happen, even to the most diligent among us. If you discover that you’ve incorrectly charged GST on a sale, don’t worry—there are steps you can take to correct the mistake.

How This Might Happen

There are a few common reasons why you might end up incorrectly charging GST:

You mistakenly treated something that isn’t actually a sale as a taxable sale.
You treated a GST-free or input taxed sale as a taxable sale.
You miscalculated your GST liability, resulting in a higher amount reported on your Business Activity Statement (BAS).

Now, what should you do next? The key consideration is whether you’ve passed the excess GST onto your customer.

If You’ve Passed on the GST

In most cases, if you’ve charged GST and issued a tax invoice, it’s assumed you’ve passed the GST onto your customer. In this scenario, the excess GST is considered correctly payable under the law, and the ATO cannot refund it directly to you.

Your options are:

Reimburse your customer: If you decide to reimburse the customer for the excess GST, you can make a decreasing adjustment on your next BAS to recover the amount. If your customer is GST-registered, they will need to make a corresponding increasing adjustment on their BAS.
Request a discretionary refund: In limited cases, you can apply to the ATO for a discretionary refund of excess GST that hasn’t been reimbursed to the customer. However, this is only available in specific situations where it wouldn’t result in a “windfall gain” for your business.

If You Haven’t Passed on the GST

If you have clear evidence that you didn’t pass on the excess GST to your customer (which is rare), you can treat this as a GST error. You then have two options:

Correct it on a later BAS: The ATO allows you to correct GST errors on a later BAS, which is often simpler than revising an earlier period. This option is available if the later BAS is lodged within the review period for the earlier period when the error occurred. For most small businesses (GST turnover under $20 million), you can correct debit errors up to $12,500 within 18 months of the due date for the original BAS. Keep in mind that you cannot claim additional GST credits if the four-year time limit has passed.
Revise the earlier BAS: Alternatively, you can revise the earlier BAS where the error was made, but this may be more complicated.

Key Takeaways

If you realize that you’ve incorrectly charged GST on a sale:

Don’t ignore the mistake—take action promptly.
Determine whether you’ve passed on the GST to your customer.
If possible, consider reimbursing your customer.
Keep accurate records of the error and your corrective actions.
If you’re unsure about the best course of action, seek professional advice.

By addressing GST errors promptly and correctly, you can maintain compliance and avoid future complications. If you’re ever in doubt about your GST obligations or need assistance, it’s a good idea to consult a tax professional or contact the ATO directly for guidance.

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Warning on GST Fraud

The ATO-led Serious Financial Crime Taskforce (SFCT) has issued a stern warning to businesses about the risks of attempting to exploit the tax and superannuation system through GST fraud. While it’s legitimate to optimise your tax position, businesses must avoid arrangements that cross the line into fraudulent practices. The SFCT’s recent warning highlights the dangers of related-party structuring arrangements that manipulate GST rules, stressing that being caught in these schemes can lead to severe penalties.

Recognising the Risks of Fraudulent Schemes

The ATO has raised concerns over the growing trend of businesses becoming involved in complex schemes designed to manipulate GST refund claims. These schemes often involve related-party arrangements that fabricate transactions in order to claim unjustified high-value GST refunds. Tactics can include issuing false invoices, using misaligned GST accounting methods, and duplicating GST credit claims for transactions that never took place.

While some businesses may become inadvertently entangled in these schemes, believing them to be legitimate tax strategies, the reality is that such arrangements are fraudulent. The SFCT is committed to identifying and prosecuting those engaged in these activities.

Key Features of Illegal GST Fraud Schemes

Understanding the characteristics of fraudulent GST schemes can help businesses avoid unintentional involvement. Common features of illegal arrangements include:

False invoicing: Issuing invoices for goods or services that were never provided, or inflating invoice amounts.
Misaligned GST accounting: Using different GST accounting methods between related entities to manipulate refund claims.
Duplicated GST credits: Claiming GST credits multiple times for a single transaction.
Non-existent transactions: Claiming GST credits for purchases or developments that did not occur.
Straw directors: Using individuals to conceal the true relationships between entities.

Although these activities are especially prevalent in the property and construction sectors, the ATO warns that such schemes are expanding into other industries as well.

Safeguarding Your Business from Fraudulent Practices

The ATO has issued several crucial reminders to help businesses avoid falling into fraudulent schemes:

Registering for an ABN and applying for GST refunds when not eligible is considered fraud.
The ATO does not provide loans or administer COVID disaster payments.
If you’re not operating a business, you do not need an ABN or to lodge a business activity statement (BAS).
Backdating business registrations to apply for refunds is a red flag.
False declarations can impact eligibility for other government benefits.
Sharing myGov credentials can lead to identity theft and fraud.

Taking Corrective Action if Involved in Fraud

If you suspect your business has unknowingly become involved in GST fraud, it is essential to take immediate action. The ATO encourages voluntary disclosures, which can reduce penalties in many cases. Corrective actions may include revising activity statements, cancelling fraudulent ABN registrations, and setting up repayment arrangements.

To ensure compliance with tax laws and avoid unintentional breaches, it is advisable to consult with an independent tax professional. If something seems too good to be true, it probably is, and it’s important to exercise caution.

Conclusion

Maintaining the integrity of the tax system is crucial for ensuring that funds are available for essential community services such as healthcare and education. By staying informed, vigilant, and compliant with tax regulations, businesses can avoid involvement in fraudulent schemes and contribute to a fairer and more equitable tax system. If you suspect tax fraud or have information on potential fraud, report it confidentially to the ATO, who takes all reports seriously and provides whistleblower protection for those who come forward.

Source: ATO

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Is Your GST Compliance Up to Standard?

Managing GST compliance can feel overwhelming, but with the right understanding of your obligations, you can make the process more manageable. The Australian Taxation Office (ATO) is committed to ensuring businesses comply with GST regulations, using advanced tools to identify and address non-compliance. Failure to meet GST obligations can lead to significant penalties, audits, and reputational damage. Staying informed and proactive is key to avoiding these risks. This guide provides an overview of the ATO’s focus areas and practical steps for addressing GST errors effectively.

What is GST?

The Goods and Services Tax (GST) is a 10% consumption tax applied to most goods, services, and transactions within Australia. Businesses registered for GST must include this tax in their prices, collect it on behalf of the ATO, and remit it periodically via a Business Activity Statement (BAS). In return, businesses can claim credits for the GST paid on business purchases, known as input tax credits.

GST registration is mandatory for businesses with an annual turnover of $75,000 or more ($150,000 for non-profits). Additionally, ride-sourcing providers and taxi drivers must register for GST regardless of their turnover. If you’re uncertain about your GST obligations, seeking professional advice can ensure you’re on the right track.

ATO’s Key Focus Areas for GST Compliance

The ATO closely monitors areas where businesses commonly fall short, using data-matching technologies to detect non-compliance. Being aware of these areas can help you avoid mistakes and stay on top of your GST obligations.

GST Registration for Ride-Sourcing and Taxi Services

Ride-sourcing providers and taxi operators must register for GST from their very first dollar of income.
The ATO uses data-matching tools to identify unregistered drivers and operators who fail to declare their income earned through ride-sourcing platforms.

Omissions in Reporting

Failing to report all taxable sales and purchases is a major red flag for the ATO.
The ATO’s data-matching techniques can identify discrepancies, such as when a business fails to report cash sales, leading to underreported income and GST liabilities.

Incorrect GST Classification

Misclassifying transactions as GST-free or taxable is common, especially in the property and construction sectors.
For example, a restaurant incorrectly classifying takeaway food items as GST-free could result in underpayment of GST.

Misreporting GST for Real Property

The ATO is focusing on misreporting in property transactions, including incorrect use of the margin scheme and failure to include GST on property sales.
A property owner incorrectly classifying a sale as GST-free and omitting the GST payable could lead to penalties.

Claiming Ineligible Input Tax Credits

Businesses often claim GST credits on purchases that are not eligible, such as private expenses or purchases from non-GST-registered suppliers.
For instance, claiming GST credits on personal expenses, like a director’s private vehicle costs, is not permissible.

Late or Missed BAS Lodgements

Failing to lodge BAS on time can result in audits and penalties. Prompt and accurate lodgement is essential for maintaining compliance.

How to Correct GST Errors

Mistakes happen, but the ATO provides a clear framework for addressing GST errors. Correcting these errors proactively can help reduce penalties and ensure continued compliance.

Determine the Type of Error

Errors should relate to GST, GST credits, or GST adjustments. Common mistakes include overreporting or underreporting GST payable.

Use the Correct Process

For small errors within the correction thresholds, you can correct them in your next BAS.
Larger errors may require revising the original BAS or contacting the ATO directly for further guidance.

Meet Time and Value Limits

Corrections must be made within the ATO’s specified time frames. For credit errors, this is typically within four years of review. Debit errors have stricter time and value limits based on your GST turnover.

Keep Detailed Records

Document the nature of the error, how it was identified, and the steps taken to correct it. This demonstrates good faith and compliance intentions, which can be important in the event of an audit.

Understand What’s Not a GST Error

For example, claiming a GST credit on a later BAS due to not having a tax invoice earlier is not considered a GST error. Similarly, adjustments due to price changes or returned goods should be handled separately.

Seek Professional Advice

GST errors can be complex, so consulting an experienced bookkeeper or accountant is often a good idea. They can ensure your corrections are handled properly and minimize the risk of further issues.

Proactive Steps to Stay Compliant

Staying compliant isn’t just about correcting errors—it’s about preventing them in the first place. Here are some strategies to help you stay on top of your GST obligations:

Implement Robust Systems: Use accounting software to automate GST calculations and reporting. This reduces the chances of manual errors.
Regular Reviews: Periodically review your GST accounts to spot discrepancies early.
Training and Awareness: Ensure your team is well-informed about GST requirements, especially those responsible for invoicing or expense claims.
Understand GST Adjustments: Be careful when making adjustments for price changes, returned goods, or previous oversights. Proper handling will help avoid confusion.
Professional Support: If GST compliance feels overwhelming, consider seeking help from a professional. Bookkeepers or accountants can simplify the process and offer valuable guidance on maintaining accurate records and meeting ATO regulations.

Take Control of Your GST Compliance

The ATO’s ongoing focus on GST compliance highlights the importance of reviewing your processes and ensuring you’re meeting your obligations. By understanding common areas of non-compliance and taking proactive steps to correct errors, you can avoid penalties and keep your business on track. Regularly reviewing your GST practices and seeking professional support when needed will ensure your business remains compliant and well-prepared for any future changes in GST regulations.

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ATO Focus on Business Debt Collection

The Australian Taxation Office (ATO) has emphasized its commitment to collecting business debts, particularly regarding superannuation guarantee (SG), pay as you go (PAYG) withholding, and GST. This serves as a crucial reminder for businesses to stay compliant with their obligations.

Current Landscape

Recent ATO statistics reveal that while 94% of employers are fulfilling their SG obligations without intervention, over $1 billion in SG charge liabilities were raised in the 2022–2023 financial year. This highlights the financial consequences that can arise from late or missed contributions.

Timely SG Contributions

To avoid unnecessary liabilities, businesses must ensure that SG contributions for employees and eligible contractors are paid on time and to the correct superannuation funds. Note the quarterly due dates for SG contributions:

Q1 (1 July – 30 September): 28 October
Q2 (1 October – 31 December): 28 January
Q3 (1 January – 31 March): 28 April
Q4 (1 April – 30 June): 28 July

Be aware that some contracts and awards may mandate more frequent contributions than the standard quarterly schedule.

Understanding Payment Mechanics

If you use a commercial “clearing house” for contributions, payments are considered made when received by the employee’s super fund, not when sent to the clearing house. In contrast, contributions via the ATO’s Small Business Superannuation Clearing House are deemed “paid” when received by that clearing house.

Starting July 1, 2026, employers will be required to pay SG at the same time as salaries—known as “payday super.”

What to Do if You Miss a Payment

If you miss an SG payment, taking prompt action is essential to minimize penalties and access ATO support services. Here’s what to do:

Lodge an SG Charge Statement: Submit this to the ATO within one month of the missed due date. Timely lodging prevents additional penalties, which can be as high as 200% of your SG charge liabilities.
Payment Plan Options: If you lodge on time, you may qualify for a payment plan to settle your liabilities in installments.
Extension Requests: You can request an extension for lodging your SG charge statement, but this must be done before the due date.
Understand the SG Charge: The charge includes:
- The amount of missed contributions calculated on total salary (including overtime).
- A 10% annual interest rate from the start of the relevant quarter.
- An administration fee of $20 per employee, per quarter. This charge is payable to the ATO and is non-deductible.

Consequences of Non-Compliance

Failure to comply can lead to general interest charges on any outstanding SG amounts, and the ATO may issue a director penalty notice if debts remain unpaid.

Moving Forward

While mistakes can happen, addressing issues early can significantly improve outcomes for your business. For expert assistance in managing your SG obligations and ensuring compliance, don’t hesitate to contact our office.

Staying informed and proactive is key to navigating the complexities of superannuation responsibilities effectively.

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