GST turnover thresholds: Are your reporting methods still fit for purpose?

The Australian Taxation Office (ATO) has recently reminded businesses of the importance of using the correct Goods and Services Tax (GST) reporting and accounting methods, particularly where turnover has increased over time. Following its web guidance issued on 7 April 2026, the ATO has flagged that some businesses’ GST reporting method may be incorrect after exceeding key turnover thresholds. The ATO have begun changing these businesses to the correct reporting and accounting method.

As businesses grow, GST obligations can change and these shifts are not always front of mind amidst day‑to‑day operational pressures. However, continuing to apply the wrong reporting method can increase compliance risk and impact business performance such as creating cash‑flow surprises.

When do reporting obligations change?

Your GST turnover determines how and when you must report GST. In particular:

• GST turnover of $10 million or more
  • You are required to move to full BAS reporting, meaning all GST labels must be completed.
  • GST must be accounted for on a non‑cash (accruals) basis instead of a cash basis.
• GST turnover of $20 million or more
  • You must move to monthly GST reporting, rather than quarterly.

These changes can occur gradually as businesses scale, expand into new markets, or experience one‑off revenue events, making it easy for reporting methods to fall out of alignment.

What happens if you don’t update your GST reporting?

From 1 July 2026, the ATO may proactively transition some businesses to what it considers the correct GST reporting method. Where this occurs, the ATO will notify either the business directly or its registered tax agent. Businesses can also choose to update their reporting method voluntarily.

Importantly, changing your GST reporting method can have broader flow‑on effects. For example, moving to monthly GST reporting may have cash-flow effect as a result of the more frequent reporting.

Taking the time now to review your turnover position and GST reporting methodologies can help avoid rushed transitions, retrospective adjustments, or unexpected compliance costs later.

How BDO can help

BDO’s indirect tax specialists work closely with businesses at all stages of growth to ensure GST reporting keeps pace with commercial reality. We can assist by reviewing your GST turnover calculations, confirming whether your current reporting method remains appropriate, and supporting you through any required transition, including managing cash‑flow impacts and reducing compliance risk.

If you’d like to discuss your GST position or sense‑check whether your reporting methods are still fit for purpose, we encourage you to speak with one of BDO’s Indirect Tax Partners or your usual BDO adviser. Early engagement can make these changes more straightforward and far less disruptive.