The ATO has released its latest compliance focus areas for 2025 — highlighting where small businesses often go wrong — and how to stay ahead of the curve. Whether you’re a sole trader, contractor, or managing a growing team, knowing what’s on the ATO’s radar can help you avoid common pitfalls and keep your business on the right track.

1. Contractors Omitting Income

This isn’t a new concern, but the ATO is ramping up its data-matching efforts in 2025. If you’re a contractor — or work with them — the ATO is now cross-checking income reported by businesses and individuals with data from banks, platforms, and even invoicing software.

Why it matters:
If income is left out (even unintentionally), it could raise red flags. The ATO’s technology is getting smarter at spotting discrepancies.

What you can do:
Double-check that all payments received are reflected in your accounting software and reported correctly, especially if you use tools like Xero.

2. Quarterly to Monthly BAS Reporting

The ATO is encouraging small businesses to consider switching from quarterly to monthly BAS reporting for GST — not as a requirement, but to help build better financial habits.

Why it matters:
Monthly reporting can help you manage cash flow more consistently and reduce the risk of large surprises at the end of the quarter.

What you can do:
Talk to your bookkeeper or accountant about whether monthly reporting might suit your business model or improve your financial visibility.

3. Small Business Boost Measures

With several small business incentives introduced in recent years — like the Technology Investment Boost and Skills and Training Boost — the ATO is reminding businesses to review their claims and self-amend if they spot any errors.

Why it matters:
Taking the initiative to correct a claim before the ATO steps in can reduce penalties and show that you’re proactively managing your compliance.

What you can do:
Check whether you’ve claimed these boosts correctly and reach out if you’re unsure. Self-amendments can be done quickly with professional help.

4. Other Ongoing Focus Areas

In addition to the newer areas of interest, the ATO is continuing to monitor a few long-standing issues:

• Non-commercial business losses — especially where there’s a mix of personal use

• Small business CGT concessions — ensuring only eligible businesses apply

• Separating business and personal income — still a concern in closely-held or family-run businesses

• GST reporting for ride-sourcing services — including Uber, taxis, and limousines

What you can do:
Review any crossover between personal and business activity, ensure you’re not applying concessions incorrectly, and make sure GST is being reported correctly — particularly if you or your clients are involved in ride-sourcing.

The ATO has a detailed breakdown of these focus areas available here on their website.

At MKG Partners, we keep a close eye on the ATO’s evolving focus areas so you don’t have to. These updates aren’t meant to cause stress — they’re here to encourage better reporting, more accurate claims, and stronger financial habits for small business owners. Whether you’re reviewing income, looking into monthly BAS reporting, or just want peace of mind with your records.  Contact us today for a chat about your business and how we can help you stay confident and compliant in 2025.