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.
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
After completing the assessment, the ATO issues a Notice of Assessment to inform you of the outcome.
Receiving an Assessment Notice
A Notice of Assessment is an official document that the ATO issues to taxpayers after they have submitted their annual tax return.
It’s a comprehensive statement that outlines the individual’s or business’s tax bill, including details on the following:
- Income tax payable
- Tax deductions
- Offsets and credits
- Refunds
It summarises the tax calculation process and provides an overview of your financial standing regarding your tax obligations.
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 a two-week timeframe.
Where Can You Find Your Notice of Assessment?
There are several ways to access your Notice of Assessment after the ATO processes your tax return:
- myGov Account: If you have linked your myGov account to the ATO, you will receive your Notice of Assessment in your myGov inbox.
- ATO Online Services: You can also access your Notice of Assessment through the ATO’s online services. Log in to your account, navigate to the “My Profile” section, and select the communication history section.
- Registered Tax Agent: 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).
Amending and Objecting a Notice of Assessment
Suppose 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. In that case, there are two processes to remedy the situation:
1. 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.
2. Objecting to a Notice of Assessment
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, along with 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.
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.