ATO tax warnings for small business owners

The ATO has dialled the spotlight up to full beam this year. Here's your clear, action-oriented guide to staying ahead of the tax office's hottest watchpoints and exactly how Thriday can help.

1. Keep your work-related expenses squeaky clean

The ATO has flagged inflated work-related expense claims and dodgy work-from-home deductions as their top target for 2025. If a deduction doesn't pass the pub test, you risk being audited, repaying the claim, and getting hit with hefty penalties.

Thriday Solution:

• Snap receipts directly in the Thriday app for instant categorisation.

• Automatically track your work-from-home hours using the fixed-rate method.

• Maintain bullet-proof digital records accessible anytime.

2. Declare every dollar - including side hustles

Income from gig platforms, e-commerce sales, and rental side hustles is under tight scrutiny, thanks to the ATO's powerful data-matching programs. Miss declaring even small amounts and you could face penalties and amended assessments.

Thriday Solution:

• Open dedicated built-in bank accounts for each income stream.

• Auto-reconcile income transactions seamlessly.

• Have accurate income reports automatically feed into your BAS and year-end statements.

3. Pay super on time every time

Late or unpaid super contributions are firmly in the ATO's enforcement sights. If payments are overdue, hefty Super Guarantee Charges apply. These penalties can become substantial, and company directors may be personally liable.

Thriday Solution:

• Automate super payments with allocations.

• Set funds aside in a separate dedicated account.

• Receive timely reminders to ensure you never miss deadlines.

4. Get GST right and dodge fraud flags

The ATO's Serious Financial Crime Taskforce is cracking down on GST fraud and false invoicing schemes. Incorrect claims can lead to heavy penalties or even criminal charges.

Thriday Solution:

• Real-time capture and accurate GST categorisation of all sales and expenses.

• Automated BAS preparation directly within the Thriday platform.

• Identify and minimise errors.

5. Fix mistakes before the ATO finds them

The tax office encourages self-amendments and is specifically targeting incorrect claims involving small-business capital gains tax concessions, non-commercial losses, and personal use of business income.

Thriday Solution:

• Regularly review live financial balances and detailed transactions.

• Easily identify and correct errors.

• Quickly lodge amended returns directly from Thriday to keep penalties at bay.

6. Count crypto and other capital gains

Crypto disposals, swaps, and even everyday spending are taxable events. With the ATO's enhanced data-matching capabilities, missing trades could trigger audits and penalties.

Thriday Solution:

• Add net gains to your tax profile.

• Profide us with related documentation at the end of the financial year if we’re doing your tax.

7. Manage tax debt before it manages you

With a sharp focus on the $35 billion small-business tax debt, the ATO is tightening payment plans and ramping up enforcement actions against overdue debts.

Thriday Solution:

• Clearly see upcoming liabilities like GST, PAYG, and super on your dashboard.

• Access real-time cash flow forecasts.

• Proactively manage debts and arrange payment plans before issues escalate.

• If you need help negotiating tax debt, book a free call to see if we can help

Ready to cruise confidently through tax time?

Thriday simplifies banking, bookkeeping, accounting, payments and tax in one intuitive platform, purpose-built for Aussie small businesses. Stay ahead of the ATO’s watchlist and let tax time worries be a thing of the past.