The annual ritual of tax return submission is something that many Australians are well acquainted with.
However, once the necessary forms have been dispatched, a waiting period often leaves taxpayers contemplating the fate of their filings.
What comes next?
How can we find out whether our submissions were accurate and complete?
Are we going to pay more or less tax than we initially anticipated?
While these questions may worry some, the answers lie in the often-overlooked Notice of Assessment, which arrives post-submission and sheds light on the details of our tax returns, including the tax payable amount.
In this blog post, we’ll delve into the ins and outs of this document and help you navigate the unfamiliar world of tax assessments.
Understanding the Notice of Assessment
In Australia, you are required to pay tax on your taxable income. This process involves submitting an income tax return, which contains information about your income, deductions, and other relevant information.
The Australian Taxation Office (ATO) reviews this information and calculates the amount of tax you owe based on your taxable income.
When calculating how much tax you owe, the ATO takes into account various factors, such as:
- Total income
- Tax deductions
- Tax offsets
- The prevailing tax rates for the financial year
Additionally, capital gains tax applies to the sale of assets and must be reported in the income tax return.
After completing the assessment, the ATO issues a Notice of Assessment to inform you of the outcome.
What a Tax Return Notice of Assessment Contains
A Notice of Assessment is a detailed document that comprehensively breaks down your tax situation. It includes the following information:
- Your taxable income
- The amount of tax you owe or will be refunded. A tax refund may be issued if the taxpayer has overpaid their taxes.
- Any tax offsets or credits applied
- Medicare levy and surcharge (if applicable)
- HELP, SFSS, or TSL debt repayments
- The amount of tax already paid through withholding or other means
- Any penalties, interest, or other changes applied
Receiving and Accessing Your Notice of Assessment
When Do You Receive a Notice of Assessment?
Typically, we receive our Notice of Assessment within two weeks of lodging our income tax return. But this will depend on how you choose to submit the tax return:
- Paper lodgement: The process takes the longest, and you can expect to receive your Notice of Assessment within ten weeks after the ATO receives the lodgement. (It can take up to 7 weeks for paper documents to appear in the ATO’s systems.)
- Online lodgement using myTax: The Notice of Assessment typically arrives within two weeks.
- Lodgement through a registered tax agent: You can also anticipate receiving your Notice of Assessment within two weeks.
How to Get Notice of Assessment Online
You can easily access your Notice of Assessment online through your myGov account or the ATO’s online services. Here’s a step-by-step guide:
- Log in to your myGov account and select the ATO service.
- Click on the “Tax” menu item and select “Lodgements”.
- Choose the relevant financial year and click on “View details”.
- Your Notice of Assessment will be available for download in PDF format.
Alternatively, you can access your Notice of Assessment through the ATO’s online services:
- Log in to your ATO online services account.
- Navigate to the “My Profile” section and select “Communication history”.
- Find the relevant Notice of Assessment and click to download the PDF.
If you have lodged your tax return with the assistance of a registered tax agent, they will receive the Notice of Assessment on your behalf. You can request a copy of the document from your tax agent.
Receiving a Statement of Account with Your Notice of Assessment
In certain circumstances, the ATO will state the account along with a Notice of Assessment when there’s a difference between the assessed tax amount and your account balance. These circumstances include the following:
- The ATO offsets credits against other tax debts.
- You incur a penalty or interest charge.
- Your account’s opening balance isn’t zero.
- The ATO credits interest amounts to you.
- You filed more than one tax return (i.e., for multiple financial years).
Taxpayers should check their Notice of Assessment for any tax debt and take appropriate action if necessary.
Faster Processing for Serious Financial Hardship
If you are experiencing serious financial hardship, you may be eligible for priority tax return processing. This means that the ATO will assess your return as quickly as possible, usually within 28 days.
To be eligible for priority processing, you must be able to demonstrate that you are experiencing serious financial hardship, such as:
- You cannot provide food, accommodation, clothing, medical treatment, education, or other necessities for yourself, your family, or others for whom you are responsible.
- You are unable to pay your reasonable and immediate family living expenses.
If you believe you are eligible for priority processing, contact the ATO directly or speak with a registered tax agent for assistance.
Disputing or Objecting to Your Notice of Assessment
If you believe you’ve made an error on your tax return submission or that the ATO has incorrectly stated something on your notice of assessment, there are two processes to remedy the situation:
Amending a Notice of Assessment
Amending a Notice of Assessment becomes necessary when you identify errors or omissions in the information and documents you provided on your tax return. For example, you may have overlooked certain deductions or provided incorrect personal details.
You can request an amendment by contacting the ATO directly or seeking assistance from a registered tax agent.
Objecting to a Notice of Assessment with a Tax Agent
If you disagree with the ATO’s decision regarding your tax assessment, you have the right to object. This process aims to challenge the ATO’s interpretation of your tax situation or the application of tax laws to your case.
To do so, you must clearly explain your disagreement and any relevant supporting evidence in your objection. Remember that specific timeframes must be adhered to when lodging your complaint—generally, within two or four years from the date the Notice of Assessment was issued, depending on your circumstances.
Additionally, consider enlisting the help of a registered tax agent or a tax lawyer to prepare and submit your objection, ensuring a stronger case against the ATO’s initial decision.
If you believe that your Notice of Assessment is incorrect:
- Review your Notice of Assessment carefully and identify the areas you believe are incorrect.
- Gather any supporting documentation substantiating your claim, such as receipts, invoices, or bank statements.
- Contact the ATO directly or speak with a registered tax agent to discuss your concerns and determine the best course of action.
- If you choose to object to the assessment, you must lodge a formal objection in writing within the prescribed timeframes (generally within two or four years from the date the Notice of Assessment was issued).
- Your objection must clearly outline the grounds for your objection and include any relevant supporting evidence.
- The ATO will review your objection and provide a written decision. If you are dissatisfied with the decision, you may have the right to appeal to the Administrative Appeals Tribunal or the Federal Court of Australia.
It’s important to note that lodging an objection does not automatically suspend any payment obligations. You may still be required to pay the disputed amount while your objection is being reviewed. If your objection is successful, any overpaid amounts will be refunded to you with interest.
Non-Lodgement Advice for 2024
If you are not required to lodge a tax return for the 2024 financial year, you may need to submit a non-lodgement advice form to the ATO. This form notifies the ATO that you do not need to lodge a return and helps ensure that you are not incorrectly identified as a non-lodger.
You may not need to lodge a tax return if:
- Your total income is below the tax-free threshold (currently $18,200 for the 2023-2024 financial year)
- Your only source of income is from government payments, such as the Age Pension or Newstart Allowance
- You are a foreign resident and have no Australian-sourced income
If you are unsure whether you need to lodge a tax return, you can use the ATO’s online tool “Do I need to lodge a tax return?” or speak with a registered tax agent.
Key Takeaways
- A Notice of Assessment is a document that the ATO issues to taxpayers after lodging their income tax return, typically within two weeks of submission.
- The NOA includes crucial tax information such as income details, tax deductions, the amount of tax owed or refundable, and other tax-related details.
- You may also receive a Statement of Account along with the Notice of Assessment when there is a difference between the assessed tax amount and your account balance.
- You can apply to amend your tax return if your notice of assessment highlights an error. If, however, you believe the ATO made an error in their evaluation, you can object.
If you’re seeking assistance with your Notice of Assessment, tax return amendments, or objections, the experienced team at KNS Accountants is here to help.
We offer personalised guidance and support to ensure your tax affairs are handled accurately and professionally.
Don’t hesitate to reach out to us for a consultation, and let our expert advisors navigate the complexities of tax regulations on your behalf.
Frequently Asked Questions
1. What if I don’t receive my Notice of Assessment?
If you haven’t received your Notice of Assessment within the expected timeframes, contact the ATO directly or check your myGov inbox and ATO online services account. If necessary, the ATO can issue a duplicate copy. Keeping copies of income tax returns and associated documents is important for managing tax records and ensuring the Notice of Assessment is received.
2. Can I claim deductions after I’ve received my Notice of Assessment?
Yes, you can amend your tax return to claim additional deductions after receiving your Notice of Assessment. However, time limits apply, and you must have the necessary supporting documentation.
What happens if I don’t pay the tax debt on my Notice of Assessment?
You may be charged interest and penalties if you don’t pay the amount owing by the due date. In some cases, the ATO may take legal action to recover the debt. If you are experiencing financial difficulties, contact the ATO to discuss payment plan options.
If a refund cheque is misplaced or lost, contact the ATO immediately to obtain a replacement.
4. How long do I need to keep my Notice of Assessment?
It’s recommended that you keep your Notice of Assessment for at least five years after the end of the relevant financial year. This is because the ATO may request to see your records as part of an audit or review.
Disclaimer
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to contractors and small businesses. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek your own advice for any legal or tax issues raised in your business affairs.