Insights Centre | Kelly+Partners Accountants

ATO Focus Areas: Key Risk Areas the ATO is Targeting This Quarter

Written by Kelly+Partners Team | 14 March 2025

Take outs:

  • Key ATO Focus Areas for Small Businesses: The ATO is focusing on contractors omitting income, encouraging businesses to transition from quarterly to monthly BAS reporting, and promoting self-amendment of tax returns for correcting errors.

  • Risky Behaviours That Attract ATO Attention: Businesses engaging in non-compliance such as underreporting income, failing to lodge taxes, misusing business funds, or poor record-keeping are at higher risk of ATO scrutiny.

ATO Focus Areas:
Key Risk Areas the ATO is Targeting This Quarter

ATO Deputy Commissioner Will Day has outlined the ATO’s latest focus areas that small businesses need to be aware of in order to avoid common pitfalls and ensure compliance with tax and superannuation obligations.

These are the areas where the ATO is concerned that small businesses may be getting it wrong, either through oversight or deliberate actions on an ongoing basis.

At Kelly+Partners, we understand that navigating the complexities of tax regulations can be challenging. That’s why we’re here to inform and guide our clients, ensuring you stay compliant and avoid costly mistakes. Here’s a breakdown of the ATO’s latest focus areas:

Key Focus Areas for Small Businesses

The ATO’s focus areas aim to address ongoing concerns where small businesses may be making mistakes—either unintentionally or through deliberate non-compliance. By being transparent and sharing these areas of concern, the ATO seeks to help businesses build good habits and stay on track.

1. Contractors Omitting Income

Risky Behaviours that Attract ATO Attention

The ATO is particularly concerned about businesses engaging in risky behaviours that could lead to compliance issues. These include: 

How we can help: Kelly+Partners is committed to helping you understand and avoid these risky behaviours. We’ll ensure that your business maintains proper records, meets its tax and super obligations, and adheres to all legal requirements.

How We Can Support You

The ATO has made it clear that businesses should aim to set up good habits from the outset. By keeping you informed about these focus areas, we want to help you avoid common mistakes and position your business for long-term success. Here’s how we can assist:

Defining a Small Business

When the ATO refers to a "small business," they mean a sole trader, company, trust, or partnership that operates for all or part of the financial year and has an aggregated annual turnover of less than $10 million. If your business falls into this category, these focus areas and concerns apply to you.

Conclusion

The ATO’s transparency in sharing these focus areas helps businesses like yours stay informed and proactive. As your trusted accounting partner, we are here to help you navigate these potential pitfalls and help you establish the right structures to meet your obligations. By staying on top of these focus areas, you can ensure your business is on the right track for 2025 and beyond.

If you have any concerns or need help with tax, superannuation, or compliance, don’t hesitate to reach out to our team. Together, we can ensure your business gets it right.