As the year winds down and the festive season ramps up, it’s tempting to push admin to the bottom of the to-do list. But when it comes to your Business Activity Statement (BAS) and GST reporting, accuracy isn’t just important; it’s essential.
If you thought the ATO only had eyes for big corporations, think again. In 2025, they’ve shifted gears and now they’re laser-focused on everyday operators like tradies, subcontractors, and small business crews who’ve been flying under the radar.
This isn’t your standard audit season. The ATO’s gone full detective mode, using real-time data matching AI to sniff out dodgy claims. Gone are the days of “they’ll never notice.” The ATO’s new model is proactive, predictive, and precise. If your numbers don’t line up, expect a knock – or at least a very pointed email.
Let’s talk about Operation Protego the ATO’s not-so-subtle reminder that GST fraud isn’t just risky, it’s downright reckless.
This nationwide crackdown was launched to target a wave of fraudulent GST refund claims, many of which were cooked up on social media. The playbook?
- Invent a fake business
- Apply for a dodgy ABN
- Lodge fictitious BAS statements to claim GST refunds that never existed
Sounds like a bad idea? That’s because it is. The ATO estimates over $2 billion in attempted fraud, with tens of thousands of individuals caught up in the scheme—including a few who thought TikTok tax tips were legit financial advice.
Now, the consequences are rolling in:
Jail time
Repayment orders
Criminal records that stick
Every dollar falsely claimed in GST refunds is a dollar taken from the public purse—schools, hospitals, roads, and services we all rely on, the AFP and ATO are taking this seriously!
Even if you’re running a squeaky-clean business, this crackdown means the ATO is watching BAS lodgements more closely than ever. Accuracy isn’t optional; it’s your best defence.
Even honest mistakes can trigger audits, penalties, and stress. And let’s be real no one wants to spend their holidays untangling tax drama. Lodging your BAS isn’t just a box-ticking exercise; it’s a legal obligation that can make or break your business’s financial health. Whether you’re a solo tradie or running a growing crew, getting it right means avoiding penalties, audits, and sleepless nights. Here’s how to keep things clean, compliant, and stress-free:
📚 1. Nail Your Record-Keeping
Good records are your best defence. The ATO recommends:
- Keeping detailed records of all sales, purchases, wages, and expenses
- Reconciling sales against bank statements regularly
- Using the correct GST accounting method—cash or accrual
- Storing tax invoices and GST records for at least 5 years
💡 Pro tip: A digital record-keeping system tailored to your trade can save hours and reduce errors.
🧾 2. Know What You Can (and Can’t) Claim
GST credits are great – when they’re legit. Common mistakes include:
- Claiming GST on purchases that don’t include GST
- Using incorrect GST codes in your accounting software
- Claiming GST on private expenses (that new BBQ for the job site? Probably not deductible)
If you’re unsure, ask your bookkeeper or accountant before lodging.
📅 3. Lodge On Time, Every Time
Late lodgements can trigger penalties and interest charges. BAS is usually due:
- Monthly: 21st of the following month
- Quarterly: 28th of the month after the quarter ends
Set reminders, automate where possible, and don’t leave it to the last minute.
🛠️ 4. Fix Mistakes Fast
Made an error? Don’t panic fix it. You can adjust your next BAS or contact the ATO to correct it. The key is not ignoring it. The longer it sits, the bigger the problem becomes.
💡 Reminder: Interest charges on late lodgements are no longer claimable as a business expense.
For more tips and tricks check out what the ATO has to say about it BAS and GST tips.
