Lodging an objection to an ATO assessment or decision
When a taxpayer disagrees with an ATO assessment, amended assessment, or other objectable decision, the first formal step in the dispute process is lodging an objection under Part IVC of the Taxation Administration Act 1953. The objection must set out the grounds in detail and be lodged within the statutory time limit. If the ATO disallows the objection, the taxpayer can seek review in the Administrative Appeals Tribunal or appeal to the Federal Court.
This is an 8-step workflow for lodging a formal objection to an assessment or decision made by the Australian Taxation Office. The taxpayer generally has two or four years from the date of the assessment to object, depending on the type of taxpayer and the assessment.
Before you start
- A copy of the ATO assessment notice, amended assessment, or decision under dispute
- The taxpayer's tax return and supporting documents for the relevant period
- Confirmation of the objection deadline (2 years for individuals/small businesses, 4 years for others)
The workflow
Confirm the decision is objectable and check time limits
Verify the assessment or decision is an "objectable decision" under Part IVC. Calculate the objection deadline — generally 2 years from the notice date for individuals and small business entities, or 4 years for other entities. If out of time, consider whether to apply for an extension.
Analyse the ATO's position
Review the assessment notice, any accompanying reasons or position papers, and the ATO audit file (if obtained). Identify exactly which adjustments or decisions are being disputed and understand the ATO's basis for each.
Identify the grounds of objection
Formulate the legal and factual grounds on which the taxpayer objects. Each ground should identify the specific adjustment disputed, the relevant statutory provision, and why the ATO's position is incorrect. Be specific — vague grounds weaken the objection.
Research the law and gather supporting authority
Research the relevant tax provisions, case law, ATO rulings, and interpretive decisions that support the taxpayer's position on each ground. Prepare a summary of authorities for each issue.
Gather and organise supporting evidence
Collect all documents that support the taxpayer's position — tax returns, financial statements, contracts, invoices, bank records, valuations, and expert reports. Organise by ground of objection and create an index.
Draft the objection
Prepare the formal objection document setting out each ground in detail. For each ground, state the facts, the relevant law, the taxpayer's argument, and the relief sought (the correct assessment amount). The objection must be in writing and signed by the taxpayer or authorised representative.
Review and obtain client approval
Review the draft objection for accuracy, completeness, and persuasiveness. Ensure all material facts are disclosed (the taxpayer has a duty of disclosure). Obtain the client's written approval before lodgement.
Lodge the objection with the ATO
Lodge the objection in writing with the ATO — by post, through the ATO's online portal, or via the registered tax agent portal. Confirm receipt and note the ATO's 60-day deemed refusal period, after which the taxpayer may escalate to the AAT or Federal Court if no decision has been made.
What you will have at the end
A formal objection lodged with the ATO within the statutory time limit, setting out detailed grounds supported by evidence and legal authority. The ATO must consider the objection and issue a decision to allow (in whole or in part) or disallow it.
Common issues
- Objection lodged outside the statutory time limit without an extension application
- Grounds drafted too vaguely — the ATO may treat them as not properly made
- Failing to disclose all material facts, which can undermine the objection and later review rights
- Not addressing penalty and interest remission as a separate ground
- Overlooking the option to request suspension of the disputed tax debt during the objection process
Run this workflow on a real matter
Quillio helps analyse the ATO's assessment, research supporting authorities, and draft the grounds of objection with detailed legal analysis. See /practice-areas/tax-lawyers or start a free trial.
This workflow is a general guide for ATO objections under Part IVC. Objection time limits are strict, and the consequences of an improperly made objection can be severe. Always verify deadlines and consider specialist tax dispute advice.
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