VES Insights | March 2025
- Faye Absalon
- Apr 8
- 2 min read
Updated: Apr 10
VES Insights, your go-to newsletter for the latest in bookkeeping, automation, AI, Xero tips, and essential ATO updates to keep you informed and on track. From simplifying your bookkeeping to harnessing the power of automation and AI, our newsletter is packed with valuable tools and reminders to help you stay ahead.
ATO Interest Charges No Longer Tax-Deductible
From 1 July 2025, businesses will no longer be able to claim tax deductions on ATO interest charges for overdue payments. This change aims to discourage late tax payments and prevent businesses from using ATO payment plans as short-term financial relief.
If your business has ever incurred interest charges on unpaid tax debts, it’s essential to reassess your financial strategy now.
ATO Offsetting - What Happens When Your Refund Pays Off Other Tax Debts?
When you’re owed a tax refund, the ATO may use it to pay off other outstanding tax debts before issuing any remaining balance to you. This process, known as ATO offsetting, is legal, automatic, and often unexpected—especially for business owners who aren’t monitoring their obligations across different tax accounts.
Mandatory Monthly GST Reporting: What Small Businesses Need to Know
Starting April 1, 2025, the ATO will introduce mandatory monthly GST reporting for businesses with a history of late payments, non-lodgment, or reporting errors. This change aims to improve tax compliance, prevent large debts, and encourage better financial habits. While monthly reporting offers benefits like improved cash flow, it also means increased administrative work.
Disclaimer: This newsletter is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.
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