With the July to September BAS due on Wednesday 28 October 2026, many business owners are about to face a GST and PAYG bill that has been building for three months. If that payment regularly squeezes your bank account, there is an option worth knowing about: reporting GST monthly instead of quarterly.

What the ATO says

The ATO says that if your GST turnover is less than $20 million, you may choose to report GST monthly. Its view is that smaller, more manageable payments can improve your cash flow and make it easier to keep your payments on track. It also notes that monthly reporting helps keep your record keeping up to date.

It is a trade off

Monthly reporting means more lodgments, so it suits businesses with good bookkeeping habits. The ATO also separates a voluntary switch from a forced one. In recent years it has moved some small businesses with a history of late lodgment or payment to monthly reporting, and where the ATO makes that decision, the business must report monthly for a minimum of 12 months. A choice you make yourself is a better place to start.

How and when to switch

  • Timing matters. The ATO says that if you apply early in a lodgment period, the new cycle can generally start straight away. Later in the period, it starts from the next quarter or year.
  • Companies and other entities can usually apply through Online services for business. Sole traders need to phone the ATO or apply in writing.
  • Your agent can do it. Registered tax and BAS agents can make the change through Online services for agents.
  • Do not flip back and forth. You may not be able to change your cycle again if you changed it within the last 12 months.

Changing your GST cycle also changes related items on your BAS, such as wine equalisation tax, luxury car tax and fuel tax credits. You can also choose to align other obligations, such as PAYG withholding, to monthly.

What to do now

  • Lodge the 28 October BAS first. Do not let a cycle change distract you from the return in front of you.
  • Look at your last few BAS bills. Were they a surprise each time? That is the clearest sign monthly could help.
  • Check your bookkeeping. You need to reconcile GST every month, so make sure your software and bank feeds are up to date.
  • Set tax money aside. The ATO suggests putting GST and PAYG withholding in a separate account as you go, whichever cycle you use.
  • Ask your accountant. They can tell you whether the extra lodgments are worth the smoother cash flow for your business.

If you cannot pay a BAS on time, contact the ATO before the due date rather than after it. Interest on overdue tax debt compounds daily, so waiting only makes the bill larger.

This article is general information only and does not take your circumstances into account. Speak to your accountant before making decisions.