ATO and administration
Commissioner of Taxation
The Commissioner of Taxation is the statutory office holder who is responsible for administering Australia's tax laws, making rulings and decisions, and heading the ATO.
The Commissioner of Taxation is a position created by legislation. The person who holds it has the legal authority to administer a range of tax laws, including those for income tax and GST. When tax legislation says that the Commissioner may do something, such as issue an assessment, impose a penalty or grant an extension of time, that power rests ultimately with the Commissioner, even though most decisions are made by delegates.
In practice, the Commissioner leads the ATO. Day-to-day decisions are made by thousands of officers who have been given delegated authority. When you receive a notice of assessment, a private ruling or a decision on an objection, the decision is made in the Commissioner's name by an officer who has been authorised. This is why the law refers to the Commissioner, even where an individual officer is the one who signs.
The Commissioner also issues public rulings, which set out how the ATO interprets the law. These are generally binding on the Commissioner, which means that taxpayers who follow them correctly are protected. The Commissioner can also exercise discretions, such as remitting penalties and interest in appropriate cases, allowing extensions of time to lodge or object, and deciding whether to enter into payment arrangements.
Decisions of the Commissioner can be challenged. If you disagree with an assessment or another decision, you can lodge an objection, which will be considered by an officer not involved in the original decision. If the objection is not resolved to your satisfaction, you can generally seek review by the Administrative Review Tribunal or appeal to the Federal Court. Time limits apply, so check the notice you receive.
The Commissioner has significant powers, including the power to require information and documents, to access premises, and to recover debts. These powers are balanced by taxpayer rights, which are set out in the Taxpayers' charter, and by the oversight of independent bodies. The Commissioner must administer the law as it is written and cannot decide a tax rate or rule on policy grounds.
For businesses, the practical point is that the ATO speaks with the Commissioner's authority, and written rulings and decisions matter. If you need certainty on an issue, applying for a private ruling gives you the Commissioner's formal view on your own circumstances. Verbal advice on the phone is helpful but does not carry the same protection as a written ruling.
This page is general information only, so confirm your situation with the ATO or a registered tax professional.
Worked example
A business receives a decision refusing to remit a penalty of several hundred dollars for a late BAS. The decision is made in the Commissioner's name by an ATO officer under delegation. The business disagrees, lodges an objection with evidence of a serious illness, and a different officer reviews it. The Commissioner's delegate allows the objection and remits the penalty.
Practical tips
- Remember that most ATO decisions are made by delegates under the Commissioner's authority, and can be objected to.
- Get a written private ruling when you need certainty, rather than relying on phone advice.
- Check the time limit for objecting as soon as you receive a decision.