Tax Return Amendments

Time Limits on Amended Assessments

In the case of fraud or tax evasion, or to give effect to objection, appeal or review decisions, there is no time limit on the Tax Office issuing an amended assessment to increase a taxpayer’s liability.

In other cases, the Tax Office is subject to a two or four year limit on amendments which increase the tax liability. The time limits can be extended with Federal Court approval if further time is needed for an investigation.

Under rules which have been in place since the 2004-05 tax year, the time limits for amendments are generally:

2 Year Amendment Period:

• Individuals (apart from the exceptions noted below)
• Small Business Entities

4 Year Amendment Period:

• Individuals receiving distributions from non-small business entity trusts and partnerships (other than public trading trusts and corporate unit trusts)
• Taxpayers associated with tax schemes and other special cases
• Individual’s superannuation excess contributions tax assessment
• Small Business Entities requiring adjustments under CGT earnout rules
• All other taxpayers

Indirect Taxes

• Indirect taxes (GST, WET, LCT and Fuel Tax) have their own rules – about which see here. The rules provide for a 4-year amendment period.

Review periods for most matters run from the date (or deemed date) a notice of assessment is issued. 

Objections

The important distinction between an “objection” and an amendment request, is that a legal objection preserves your rights to take the matter further, if a decision is not favorable to you. This should be considered in the light of the relative importance, or economic value of the issues in dispute.

A valid objection must be in writing, explicitly “objecting” or stated to be an objection, and be lodged within the time allowed. It must identify the disputed matter with sufficient precision, the year and any reference number, such as a notice of assessment.

Without court or tribunal consent, your case is limited to the grounds stated in the objection; care should therefore be taken to include all the possible grounds.

Forms – Objection Forms

Whilst there is no prescribed format for an objection, the ATO provides downloadable forms to help ensure that the matter you are disputing is securely raised, and that expected forms of documentary evidence is included.

•  Form of objection (for general use) is here (Nat 13471):  Objection form – for taxpayers
•  Form of objection for use by tax agents is here  (Nat 13044):  Objection form – for tax professionals

There is no lodgement fee for a notice of objection.

Objection Time Limits

The objection time limits are those periods in which a valid amended assessment may be made, which are summarised here.

That includes amendments to amended assessments, with some limitations. Objections to amended assessments are confined to the later of the original assessment objection period, or 60 days after the amended assessment.

References for these matters are set out in Sections 170 and 173 of the Income Tax Assessment Act 1936 and Section 14ZW  of the Tax Administration Act 1953.

Late Objections

Late objections may be considered on request, at the ATO’s discretion, for which there are guidelines documented in ATO Practice Statement PS LA 2003/7.

Information requirements for an Application to extend the time to lodge an objection are here: Application for extension of time to lodge an objection.

Time Taken For a Decision On An Objection

If the ATO has not made a decision within 60 days you can write and request that they do so. Generally, if decision hasn’t been made within a further 60 days, the objection is deemed to be disallowed.

Reviewable Decisions

Objections may be lodged against reviewable decisions, commonly including tax assessments, administrative penalties, private rulings, and reviewable indirect tax decisions (such as GST).

The ATO provides detailed guidance for obtaining reviews and lodging objections here.