The March tax update highlights the ATO’s compliance priorities, measures to address GST fraud, increased penalties, stricter super guarantee obligations, and digital updates. It underscores the importance of aligning practices with evolving regulations and maintaining transparency.
March 2025 has brought new developments in tax regulations and compliance initiatives set forth by the Australian Taxation Office (ATO). These updates reflect the ATO’s focus on maintaining the integrity of Australia’s tax system while highlighting areas where businesses must remain diligent. From small business compliance priorities to super guarantee (SG) obligations, here’s what you need to know about the latest tax updates and their implications:
ATO’s focus areas for small businesses
The ATO has outlined its primary focus areas for small businesses for the 2025 financial year, emphasising greater compliance and accuracy in tax reporting[i]. This year, the ATO is zooming in on three key issues:
- Claims for deductions and concessions – Ensuring appropriate use of small business CGT concessions and checking eligibility for non-commercial loss deductions.
- Misuse of business income and assets – Addressing improper use of business funds for personal expenses or benefits.
- Businesses operating outside regulatory systems – Identifying operations that fail to register for GST or underreport income, with particular attention to enterprises in taxi, limousine, and ride-sourcing services.
To assist small businesses in addressing these focus areas, the ATO plans to release quarterly themes, offering targeted guidance and strategies.
GST fraud under the spotlight
The ATO, supported by the Serious Financial Crime Taskforce, is ramping up its efforts to combat GST fraud[ii]. Fraudulent activities such as false invoicing, misaligned GST accounting methods, duplicated claims, and phony purchase records have drawn scrutiny. These schemes aim to exploit the GST refund system, and the taskforce is actively investigating businesses that attempt to cheat the system.
Businesses are advised to maintain transparent and accurate records of GST transactions. Any discrepancies or dubious practices could result in audits, penalties, and reputational damage. Integrity in reporting is key to avoiding complications.
Increase in tax penalties
From November 2024, the amount payable for tax-related penalties has increased, with penalty units rising from $313 to $330[iii]. This change will impact entities failing to meet obligations such as recordkeeping and GST compliance. For example, failing to retain required tax documentation could result in penalties of up to $6,600 for 20 penalty units.
The adjustment underscores the importance of consistent compliance with tax laws. Businesses must ensure they not only understand but also adhere to their reporting and recordkeeping obligations to avoid costly penalties.
Stricter super guarantee (SG) compliance
Enhanced data access via Single Touch Payroll has enabled the ATO to monitor SG contributions more closely. This heightened scrutiny resulted in a notable collection of unpaid SG amounts in recent years. During the 2023-2024 financial year alone, the ATO issued over 8,700 director penalty notices linked to non-compliance, recovering $932 million owed to employee super accounts[iv].
Employers are reminded to keep accurate payroll and super contribution records, meet payment deadlines, and ensure reporting accuracy. With over 92% compliance recorded across businesses, those lagging behind are risking enforcement actions and reputational harm.
Time limits for GST and fuel tax credit claims
The ATO is urging businesses to claim GST and fuel tax credits within four years of the due date of the relevant Business Activity Statement (BAS)[v]. Failing to act within this timeframe results in the forfeiture of these entitlements, even if mistakes are later discovered.
To stay within this window, businesses can file corrected BAS forms or valid objections. Accurate tracking of BAS submissions and previous claims is therefore essential. Additionally, businesses should proactively review older transactions to identify overlooked credits, ensuring they capitalise on every entitlement.
Updates to myGovID
The Australian Government’s myGovID platform, a pivotal tool for accessing government services, has been renamed myID. While this change does not impact the functionality or security of the service, it comes with a heightened risk of scams. Fraudsters may exploit this transition by sending fake messages or emails asking users to re-register or verify details.
The ATO has cautioned Australians to remain vigilant about unsolicited communication. Government agencies will never ask for sensitive personal information through unofficial channels. It is crucial to verify the origin of requests and use official sites or platforms for updates.
Final thoughts
The ATO’s updated compliance priorities and penalty measures underscore an ongoing commitment to a fair and transparent tax system. Small businesses must align their practices with regulatory expectations, especially in areas such as SG contributions, GST compliance, and accurate taxation claims. Similarly, vigilance against fraud, both internally and externally, remains vital.
Staying on top of these updates ensures smooth operations and minimises the risk of penalties or audits. This year’s changes serve as a reminder that robust recordkeeping, timely reporting, and ethical business practices are non-negotiable aspects of Australian taxation compliance. By keeping these in focus, businesses can not only avoid pitfalls but also contribute to the health of the nation’s tax system.
If you would like more information or further clarification on the new tax measures and how they affect you, or if you need assistance with your tax return, contact our office today.
DISCLAIMER: All information on Focus Wealth Advisers is general in nature and does not take into account your personal objectives, financial situation, or needs. You should consider your personal circumstances and seek professional advice before making any decisions based on this information.
[i] ATO (2025) Small business focus areas
[ii] ATO (2024) Taskforce issues GST fraud warning to dishonest businesses
[iii] ATO (2024) Penalty units
[iv] ATO (2024) Our SG compliance results are here
[v] ATO (2024) Don’t miss out on GST credits and fuel tax credits
