The ATO doesn't need to knock on your door to know what's going on. It already has your bank data, your suppliers' records and a lot of very clever software.
Since July 2025 it has contacted more than 17,000 small businesses where there were signs of omitted income. It is also stepping up checks on over-claimed deductions and incorrect GST credits.
Five mistakes attracting attention
- Not reporting all income (cash sales included).
- Paying workers in cash to avoid tax and super obligations.
- Claiming private expenses as business deductions.
- Using business accounts or assets for personal spending.
- Keeping inaccurate transaction records.
The ATO uses data analytics and third-party information to spot gaps between what's reported and what it can see. If the numbers don't line up, expect a letter.
The credit card deadline has moved
Separately, the ATO has pushed back the date it stops accepting direct credit card payments. It was 30 November 2026. It is now 30 June 2027.
After that date, if you want to pay your tax by credit card you may need a third-party provider. That could mean extra fees or slower processing.
Why this matters for cash flow
Tax bills have a habit of arriving together. BAS, PAYG, super and income tax can all land in the same few weeks. If you've been relying on a credit card to smooth that out, now is a sensible time to rethink the plan.
Hot Tip: Set up a separate account for tax and move a percentage of every payment into it as it comes in. It's the simplest way to make sure the money is there when the ATO wants it.
Plan ahead
Get your accountant to check your record-keeping. Then look at your cash-flow forecast for the next 12 months. If you're concerned about meeting upcoming obligations, book a complimentary chat and let's discuss what funding options might be available.
Book a complimentary chatThis information is general in nature and is not tax advice. Speak with your accountant or registered tax agent about your situation. All loans are subject to lender approval, terms and conditions.
Frequently asked questions
The ATO has moved the date from 30 November 2026 to 30 June 2027. After that, paying tax by credit card may mean using a third-party provider, which can add fees.
Not reporting all income, paying workers in cash to avoid tax and super, claiming private expenses, using business accounts for personal spending and keeping inaccurate records.
Set aside a percentage of every payment in a separate tax account and review your 12-month cash-flow forecast with your accountant. Our business loans page explains funding options.
