- with Senior Company Executives, HR and Finance and Tax Executives
- in Australia
- with readers working within the Accounting & Consultancy, Media & Information and Oil & Gas industries
The Australian Taxation Office (ATO) has outlined its current compliance priorities for small businesses, with a clear message: most businesses do the right thing, but those who don't will face closer scrutiny.
ATO's small business focus areas
From 1 October 2025, the ATO is placing particular attention on:
- Business vs personal income - ensuring business funds and assets are not used for private purposes.
- Deductions and concessions - including non-commercial losses, the small business CGT concession, and recent "boost" measures.
- Operating outside the system - undeclared contractor income, incorrect GST registration, and risks in property, construction and professional services.
- Building good habits - accurate record keeping and transitioning from quarterly to monthly GST reporting where required.
Risky behaviours on the ATO's radar
Alongside these focus areas, the ATO has highlighted the behaviours that will draw compliance attention, including:
- Not declaring all income or inflating deductions.
- Failing to register, report or pay correctly and on time.
- Overlooking key tax and super obligations, including for staff.
- Paying employees in cash to avoid tax and super obligations.
- Using business funds or assets for personal lifestyle expenses.
What this means for small business
For the ATO, "small business" includes sole traders, companies, trusts or partnerships with an aggregated annual turnover under $10 million.
The message is clear: good systems, accurate reporting, and clear separation between personal and business finances are critical to staying compliant. Businesses that knowingly operate outside the system risk significant consequences.
How we can help
At Coleman Greig, our Taxation team works with small businesses to identify risks early, strengthen compliance processes, and engage with the ATO when issues arise.
If you have concerns about your tax or super obligations, or want to ensure your practices align with ATO expectations, our team can assist.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
