Compliance
Objection
An objection is a formal written challenge to an ATO decision, such as an assessment or penalty, lodged within a set time and considered by an officer independent of the original decision.
If you think the ATO has made the wrong decision, you can lodge an objection. An objection is a formal written request for the decision to be reconsidered. Typical decisions that can be objected to include income tax assessments, amended assessments, GST and BAS assessments, penalties, and some refusals of requests such as refusing to remit a charge or refusing a registration or cancellation.
An objection must be in writing, within the time limit, and should say clearly which decision is being challenged and why. The limits differ depending on the type of decision, and in some cases can be shorter for indirect taxes such as GST than for income tax. The notice you receive from the ATO usually explains how long you have, so check it as soon as it arrives. An extension may be possible if there is a good reason for the delay.
The objection is generally considered by an ATO officer who was not involved in making the original decision. This is meant to give a fresh look. The strongest objections are well organised, set out the facts, refer to the relevant law or ATO guidance and attach supporting evidence such as invoices, contracts and bank records. Simply saying that the amount is unfair is less likely to succeed.
You usually need to deal with the underlying debt in the meantime. The ATO may ask for payment of the disputed amount, or may agree to defer collection while the objection is considered, depending on the circumstances. Interest, such as the general interest charge, may continue to build on amounts that remain unpaid. It is worth discussing this with the ATO early, and a payment plan can sometimes help.
If the objection is disallowed, either wholly or partly, you can usually seek review by the Administrative Review Tribunal or appeal to the Federal Court, within a specified period. These steps can involve costs, formal procedures and deadlines, so many taxpayers get professional advice. The ATO may also try to resolve some disputes through alternative dispute resolution, which can be quicker and cheaper than formal hearings.
A common mistake is missing the deadline because the notice was not read or was sent to an old address. Keeping your contact details current in ATO online services helps. Another is to confuse an objection with a request to amend. If you have made an error yourself, amending the return or BAS is the correct approach, whereas an objection is for challenging the ATO's decision.
This page is general information only, so confirm your situation with the ATO or a registered tax professional.
Worked example
The ATO amends a business's BAS and denies $4,400 of GST credits because it says invoices were inadequate. The business finds the original tax invoices and lodges a written objection within the time shown on the notice, attaching the invoices and bank records. An independent officer reviews it and allows the objection, so the $4,400 credit is restored and any related penalty is reconsidered.
Practical tips
- Check the deadline on the notice as soon as you receive it and lodge in writing before it expires.
- Attach supporting documents and explain the law or facts that support your position.
- Keep your contact details up to date with the ATO so you do not miss notices.