ATO issues reminder on supplementary GST returns for large businesses
The Tax Office has completed its pilot program for the supplementary annual GST return and refined the effectiveness of the return.
The ATO has reminded large businesses that they may soon need to lodge a supplementary annual GST return in a recent update.
Last year the ATO announced it would be rolling out a supplementary annual GST return for public and multinational businesses that have had a GST review.
"The return will allow us to better tailor our engagement with taxpayers and enable more targeted justified trust reviews requiring less resource investment for many taxpayers," it said.
"Taxpayers who have achieved high levels of assurance are expected to benefit most as they’ve already adopted better practice governance and systems practices."
To support the implementation of the new return, the ATO conducted a pilot program with a small number of Top 100 and Top 1,000 taxpayers.
"The focus of the pilot was on the clarity and functionality of the return’s questions," the ATO said.
"Feedback from taxpayers helped us refine the return to enhance its overall effectiveness, while ensuring it is straightforward and user-friendly."
Large businesses that are required to lodge a supplementary annual GST return were notified of their requirement to lodge in an email late last year.
"You will also receive a notice to lodge by email and post approximately 4 months before your lodgment due date," the ATO said.
"For early December balancers, this means you will receive your notice to lodge this May, with the return being due on 21 August 2025. All due dates are available on our website."
The ATO has also reminded large businesses to update their details to ensure that they don't miss correspondence from the ATO about the new return.
Large businesses are required to lodge a supplementary return for the 2024–25 financial year if they received wither a top 100 GST assurance report, top 1,000 combined assurance review report with a GST assurance rating or a top 1,000 GST streamlined assurance review on or before June 2024.
"If you haven't yet received a GST assurance rating, you're not required to lodge a supplementary return," the ATO said.
Businesses that are required to lodge the return must complete a supplementary return starting from the financial year following the financial year they received their GST assurance report.
"For example, if you received your first GST assurance rating in a Top 1,000 combined assurance review report issued after 30 June 2024, but before 30 June 2025, you'll need to complete a Supplementary annual GST return for the 2025–26 financial year onwards," said the ATO.
The ATO previously stated that it would use the information provided in the return to help assess the extent to which it has confidence that GST has been correctly reported and to determine the level of ongoing investment in GST governance.
"We'll also use the information provided to identify and monitor GST risks, and differentiate our approach where we do identify specific issues that require further engagement with you," it said.
