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To enhance GST compliance and streamline assurance processes, the Australian Taxation Office (ATO) has announced the introduction of a supplementary annual GST return for specific large businesses. This initiative will target the Top 100 and Top 1,000 public and multinational business taxpayers that have undergone a GST assurance review. The move is part of the ATO’s ongoing efforts to strengthen GST governance and simplify its justified trust program.
Key Objectives of the Supplementary Annual GST Return
The introduction of the supplementary return aims to:
Increase Efficiency of Justified Trust Reviews: By requiring additional, focused information from these large businesses, the ATO hopes to reduce the resource intensity typically involved in GST assurance reviews. This new return will provide the ATO with crucial insights, allowing for more targeted reviews without the need for extensive audits.
Monitor and Track Compliance: The return will help the ATO monitor how businesses are responding to prior recommendations made during previous assurance reviews. It will specifically assess actions taken regarding GST governance and compliance updates throughout the financial year.
Pilot Program and Full Rollout
In the coming months, the ATO will conduct a pilot program, expected to commence within six months. This pilot will involve a small selection of Top 100 and Top 1,000 taxpayers as part of their ongoing GST assurance reviews. The primary focus during this trial phase will be testing the clarity and functionality of the new supplementary return to ensure it meets the ATO’s objectives and is easy for taxpayers to complete.
Following the pilot, the ATO plans to introduce the supplementary annual GST return to all remaining taxpayers within the Top 100 and Top 1,000 categories, with full implementation beginning in the 2024–25 financial year.
Filing Deadlines and Publication of Information
The ATO will soon publish a detailed version of the supplementary GST return on its website. This publication will include the list of impacted taxpayers, lodgement deadlines, and instructions on completing the return.
One important detail to note is that the due date for lodgement will vary depending on each taxpayer’s financial year. For example, early balancers—businesses whose financial year ends on a date earlier than June 30—will be required to lodge their returns by 21 August 2025. The ATO will notify all affected taxpayers directly to ensure they are aware of their obligations and have ample time to prepare.
This supplementary return is anticipated to bring greater transparency and streamlined compliance for large businesses, helping both the ATO and the taxpayers achieve more efficient reporting and governance standards.
As part of its ongoing commitment to tax transparency, the ATO will continue working with large corporate entities to improve compliance and ensure adherence to GST laws.