ARTICLE · 11 OCTOBER 2025

ATO sets focus areas for small business compliance

Coleman Greig Lawyers

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For the ATO, "small business" includes sole traders, companies, trusts or partnerships with an aggregated annual turnover under $10 million.

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The Australian Taxation Office (ATO) has outlined its current compliance priorities for small businesses, with a clear message: most businesses do the right thing, but those who don't will face closer scrutiny.

ATO's small business focus areas

From 1 October 2025, the ATO is placing particular attention on:

Business vs personal income - ensuring business funds and assets are not used for private purposes.
Deductions and concessions - including non-commercial losses, the small business CGT concession, and recent "boost" measures.
Operating outside the system - undeclared contractor income, incorrect GST registration, and risks in property, construction and professional services.

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