How to Object to an ATO Tax Decision or Assessment You Think Is Wrong

When should you object to an ATO decision?

An objection is the formal process for challenging certain decisions made by the Australian Taxation Office (ATO). It is different from simply correcting a mistake in a tax return.

The ATO says you should consider an objection where, for example, you disagree with how it has interpreted the law, disagree with an amended assessment, are uncertain about how the law applies to your circumstances and want the ATO to determine the issue, want to preserve your ability to seek external review, or disagree with a decision to retain a refund.

If you simply made an error or omitted information from a return and are asking for a straightforward correction, an amendment may be the appropriate process instead. See how to amend an Australian tax return after lodging. The ATO's administrative guidance distinguishes amendments, which generally correct errors or omissions, from objections, which formally dispute eligible ATO decisions.

Which ATO decisions can you object to?

Tax law gives objection rights for many, but not all, ATO decisions. These include most tax assessments and amended assessments, as well as various other decisions for which legislation provides objection rights.

Your notice or ATO correspondence may explain the available review rights. Before preparing an objection, check the ATO's current list of decisions you can object to and the deadline applying to that particular decision.

What cannot normally be disputed through an objection?

The objection process is not available for every disagreement. The ATO specifically identifies decisions that cannot be disputed this way. Examples include a general interest charge itself, a decision not to remit a general interest charge, a late payment penalty itself, and some decisions not to remit penalties or shortfall interest charges. Alternative review or remission processes may apply instead.

You also cannot object to a private ruling for a period once an assessment has issued covering that period; depending on the circumstances, the assessment itself may instead carry objection rights.

How long do you have to lodge an objection?

There is no single deadline for every ATO objection. The period depends on the decision, the type of taxpayer and, for assessments, whether the assessment is original or amended.

For an original income tax assessment, the objection period commonly corresponds with a 2-year or 4-year period, depending on the applicable assessment rules. For an amended income tax assessment, the deadline is generally the later of 60 days from when the amended assessment was given to you or the end of the applicable period calculated from the original assessment. Other ATO decisions can have different objection periods, including 60-day periods.

Because the applicable period depends on the decision, use the date and review information on your ATO notice together with the ATO's current objection time-limit guidance rather than assuming that every objection has the same deadline.

Can you object after the deadline?

Potentially. If the normal objection period has expired, tax law allows you to lodge the objection together with a written request asking the Commissioner to deal with it as if it had been lodged within time.

Your request should explain why you did not lodge within the allowable period. The ATO considers late-objection requests individually. Its published practice statement says relevant considerations include your explanation for the delay, the circumstances surrounding the delay, whether the objection presents an arguable case, and other relevant circumstances. An extension is therefore not automatic.

What should you put in your objection?

An objection must make clear that you are challenging the relevant decision and must state the grounds on which you rely fully and in detail. Your grounds should be precise enough to identify the parts of the assessment or decision you consider incorrect and explain why.

For a practical objection, identify:

• the assessment, amended assessment, ruling or other decision being challenged
• each amount, adjustment, finding or issue you dispute
• the relevant facts
• why you believe the ATO's decision is incorrect
• the result you contend should apply
• the documents and other evidence supporting your position.

The ATO's taxpayer objection form includes a declaration concerning the truth and correctness of the information and supporting documents. An objection must comply with the applicable approved-form requirements.

What evidence should you provide?

Provide evidence relevant to the specific grounds you raise. Depending on the dispute, this could include transaction records, contracts, receipts, calculations, correspondence, valuations or other documents that establish the facts on which your position depends.

Avoid submitting an objection that merely says the assessment is wrong. Clearly connect each document or fact to the ground it supports. The ATO may contact you or your authorised representative for additional information and agree on a due date for providing it.

How do you lodge the objection?

The ATO provides an Objection form – for taxpayers (NAT 13471). A valid objection does not necessarily have to use that printed form, but an alternative written objection must satisfy the approved-form requirements, including the necessary information and declaration.

Use the lodgment method specified in the ATO's current Complete and lodge your objection instructions for your circumstances. A registered tax professional can prepare an objection and lodge it for a client through Online services for agents.

There is no ATO fee for lodging an objection.

Do you still have to pay the disputed tax?

Lodging an objection does not, by itself, remove the obligation to pay a tax debt by its due date. The ATO states that, as a general principle, it expects tax debts to be paid on time even while the debt is disputed. Unpaid tax debts can attract the general interest charge where applicable.

If payment is a problem, deal with the debt issue separately rather than assuming the objection suspends collection or interest.

What happens after you lodge?

The ATO may contact you or your authorised representative to discuss the objection, ask for further information and agree on when that information should be supplied, or discuss how long the objection may take to resolve.

The ATO does not publish one fixed completion period that applies to every tax objection. The time required depends on the case and the information needed to decide it.

After considering the objection, the Commissioner must make an objection decision. An objection can be allowed wholly or in part, or disallowed. The decision you receive explains the outcome and applicable further review rights.

What if you still disagree with the objection decision?

Depending on the decision and the applicable legislation, further external review may be available through the Administrative Review Tribunal (ART) or an appeal to the Federal Court of Australia. External proceedings are separate from lodging the original ATO objection and can involve their own deadlines, requirements and fees.

Do not wait for an informal discussion with the ATO if doing so could cause an objection or external-review deadline to expire.

Common mistakes to avoid

• Using an objection when you only need to correct a straightforward error or omission that can be dealt with as an amendment.
• Assuming every ATO decision can be challenged through the objection process.
• Assuming every objection has a 60-day deadline; the applicable period varies.
• Writing only that the ATO is wrong without setting out the grounds fully and in detail.
• Leaving out evidence that supports the facts relied on in your grounds.
• Missing the deadline without including a written late-objection request explaining the delay.
• Assuming an objection automatically suspends payment of the disputed tax debt.