Business growth is a good problem to have — but it comes with reporting obligations that catch a lot of business owners off guard. As your turnover climbs past certain thresholds, your GST reporting requirements change automatically, whether you've updated your systems or not. The ATO has flagged that a number of businesses are missing this, so it's worth checking where you sit right now.

The Two Key Thresholds

As your business turnover climbs, there are two primary milestones that trigger automatic changes to your GST reporting obligations:

$10 Million Turnover: Simpler BAS to Full BAS

Once your GST turnover reaches $10 million, you're no longer eligible for Simpler BAS reporting. You'll need to move to full BAS reporting and adopt a non-cash (accrual) accounting method for GST purposes. This means more detailed reporting on your Business Activity Statement — not just the GST you owe, but a fuller breakdown of your sales and purchases.

$20 Million Turnover: Quarterly to Monthly Lodgment

Cross $20 million in turnover, and your BAS lodgment frequency shifts from quarterly to monthly. This is a bigger operational change than it sounds — it means your bookkeeping, reconciliation, and lodgment processes all need to run on a tighter monthly cycle instead of a quarterly one.

Why This Catches Businesses Out

These changes aren't optional and they aren't something you elect into — they apply automatically once you cross the threshold. The ATO has specifically noted that some businesses fail to update their reporting method after crossing these lines, and it's now contacting businesses directly when this happens. That's not a conversation you want to have reactively.

What to Do If You're Approaching Either Threshold

• 1. Track your turnover regularly Do not wait until the financial year-end. GST turnover is a rolling calculation, and thresholds can be crossed mid-year.
• 2. Review your accounting method well in advance Moving from cash to accrual accounting for GST isn't a same-day switch — it affects how and when transactions are recorded. Explore how we can help with our BAS & GST Lodgements or Business Advisory services.
• 3. Check your bookkeeping cadence Monthly lodgment means monthly reconciliation discipline. If your current processes are built around a quarterly rhythm, they'll need adjusting. Discover our Bookkeeping and Bank & Credit Card Reconciliations support.
• 4. Don't wait for an ATO letter Proactively updating your reporting method with the ATO avoids the compliance conversation altogether.

“Crossing a GST turnover threshold isn't just an administrative milestone — it demands an immediate operational shift. Proactively adapting your systems and accounting methods before you hit the limit ensures compliance and avoids reactive ATO scrutiny.”

The Bigger Picture

This sits alongside a broader shift toward more frequent, more digital ATO reporting — partnerships, for example, must now lodge Statements of Distribution electronically regardless of size. The direction of travel is clear: reporting is becoming more real-time, and businesses that plan for it ahead of time avoid the scramble.

If you're approaching either threshold and want to make sure your systems and accounting method are ready before the ATO comes knocking, get in touch with our team at PHC & Associates — we can help you transition smoothly.

Further Reading

• ATO — GST reporting and lodgment obligations