On the ATO’s Radar: What to Watch in 2026–27

The ATO is making greater use of data matching and technology to identify errors, inconsistencies and unusual activity in tax reporting. For businesses and individuals, this means it is more important than ever to make sure your records are accurate and your tax obligations are up to date.

Here are some of the key areas attracting ATO attention in 2026–27.

Income and ATO data matching

The ATO receives information from banks, employers, government agencies, online platforms and other third parties and compares this with information reported in tax returns and activity statements.

Businesses should make sure all income is correctly recorded and reported, including contracting and online income.

GST and BAS reporting

GST remains an important area of ATO compliance activity. Incorrect GST claims, unusual reporting patterns and late lodgments can all attract attention.

Regularly reviewing your GST coding and reconciling your accounts can help identify errors before your BAS is lodged.

Business and private expenses

Using business funds for personal expenses can create tax issues, particularly for company directors and shareholders.

Business and personal expenses should be clearly separated and any private use of business funds or assets correctly recorded. Depending on the circumstances, Division 7A or fringe benefits tax rules may also apply.

Business deductions

The ATO continues to look closely at deductions, particularly where expenses have both a business and private component.

Good records are essential. Motor vehicle costs, travel, entertainment and other mixed-use expenses should only be claimed where there is a genuine business connection.

Small business CGT concessions

The small business CGT concessions can provide valuable tax savings when selling a business or business asset, but the eligibility rules can be complex.

If you are considering selling a business or significant asset, it is important to seek advice before the transaction takes place.

Superannuation obligations

With Payday Super commencing from 1 July 2026, employers need to pay closer attention to when superannuation contributions are made.

Businesses should ensure their payroll systems, employee details and super payment processes are working correctly and any errors are addressed promptly.

Lodging and paying on time

The ATO is also focused on businesses keeping their tax obligations up to date and preventing tax debt from building up.

If your business is experiencing cash flow difficulties, don't ignore outstanding tax or BAS obligations. Lodging on time and dealing with payment issues early can make a significant difference.

The key message

With the ATO having access to more information than ever before, inconsistencies and errors are becoming easier to identify.

Keeping accurate records, separating business and private expenditure and staying on top of tax, GST and super obligations can help reduce the risk of problems down the track.

Contact your Client Manager if you have any further questions.