From Quarterly to Monthly: The ATO’s Not-So-Subtle Hint to Pay Up

You know what they say: nothing is certain except death and taxes. Well, the taxman-ian devil (AKA the ATO) decided to spice things up and combine the two – well kind of but not really.

There’ve been a couple of recent changes that you shouldn’t ghost 👻 (pun intended), especially if you’re dealing with tax debts or notifying the ATO about a death. Sounds grim, but we promise to keep it light(ish) and helpful!

💸 From Quarterly to Monthly: The ATO’s Not-So-Subtle Nudge

If you’ve been cruising along with quarterly activity statements (BAS) and you owe the ATO a bit of coin, they might be sliding into your DMs (digitally or literally) to let you know… you’re going monthly now.

Why the change?

It’s not personal — it’s practical (for them).

The ATO wants to:

Keep tabs on debt earlier
Get cash flowing back faster
Help you stay on top of your obligations before things snowball

If you’ve got a track record of not paying on time, or you’ve racked up some debt and haven't been chipping away, you may get bumped to monthly reporting. It’s not just late payers on the ATO’s radar — late lodgers are in the mix too. If you’re constantly filing BAS fashionably late, that’s another red flag. Think of it like financial gym – a little more frequent, a little more sweaty, but way better for your (tax) health in the long run.

What does it mean for you?

More regular reporting
Smaller (but more frequent) payments
A bit more admin, but less chance of falling behind.
Higher accounting fees – more frequent lodgements could mean more time (and cost) spent with your accountant (that's us - I mean, we would love it, but would your bank account?) Another great reason to stay on track.

💡Hot tip: If this sounds like your situation, don’t panic – chat with us. We can help tidy things up and keep the ATO off your back (and out of your inbox) cos the good news? If you play nice for 12 months — lodging and paying on time — you can ask the ATO to let you go back to quarterly. Consider it passing probation with a BAS bonus!

💥 Oh, and Plot Twist: ATO Interest is No Longer Deductible

Just when you thought the ATO drama was done… Parliament went and made ATO interest (aka General Interest Charge) non-deductible. That’s right — if you’re late to the tax payment party and cop interest on your debt, you can no longer claim it as a tax deduction. No more tax silver lining on your tardiness. 🙅‍♂️

Why the change?

The government’s cracking down on what they see as “rewarding” bad behaviour — if you're late paying, they don’t want you getting a tax break for it too. Fair? Maybe. Painful? Definitely.

What does this mean for you?

That interest bill from the ATO just got more expensive
Even more reason to stay on top of your obligations
A healthy incentive to sort your debt sooner (or, better yet, avoid it altogether)

💡Pro tip: This one’s a no-brainer — hive off your tax as you go and pay on time. If you can’t afford it, there are bigger dramas brewing that need sorting ASAP… and that’s where we come in.

💀 And there is another one ... when Someone Dies, The ATO Wants to Know

Sorry to be the bearer of bad news, but even when someone passes away, tax doesn't. The ATO has updated the way they receive notifications of death (yes, that’s the actual term), and it’s now a little more streamlined – especially for tax agents, lawyers, and next of kin.

What’s new?

You can now notify the ATO online with supporting docs like the death certificate and Will
Faster process = less paperwork limbo
If the deceased has an outstanding tax position, it can be sorted more efficiently (RIP to tax-time confusion)

💀 Dead serious advice: If you’re dealing with an estate or handling someone’s affairs, don’t let the tax stuff be an afterthought. We know it’s not fun, but it is important. And we can help make it a whole lot less daunting.

TL;DR: What’s the Bottom Line?

Owe the ATO or a late lodger? You might go from quarterly to monthly – it’s not punishment, it’s just "preventative accounting"
Fall behind on payments? The interest on the debt isn’t even tax deductible. Yikes. 😬
Someone passed away? There's a smoother path now to let the ATO know and wrap things up properly.

Death and taxes may be inevitable, but confusion and chaos don’t have to be

Need help navigating these changes? Or just want to make sure your accounts aren't on life support? Give us a shout – we’ll bring the spreadsheets and the sass. Keeping your tax alive (and kicking) – one pun at a time. 😉

Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice