Self-Assessment System

Taxation in Australia operates under a self-assessment system where the ATO accepts the information contained in the tax returns as lodged and issues a tax assessment based on the information lodged. The tax returns are not examined initially on lodgement but may be subject to an ATO review or audit at a later date, and amended within various statutory time limits if found to be incorrect (with potential penalties). However, in the event of fraud or tax evasion, there is no time limit for the amendment of the tax returns by the ATO.

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Safe Harbour Provision

Under the safe harbour provisions, a client of a registered tax agent will not be liable to certain ATO administrative penalties for incorrect or late lodgement of tax returns if you provide all relevant tax information to your tax agent to enable the lodgement of the return, notice or statement to the ATO by the due date.

However, safe harbour does not apply where the penalty arises from recklessness or intentional disregard of the tax law by you or your involvement in tax avoidance schemes. Further information on the safe harbour provision can be found here.

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Your Rights

​As a taxpayer, you have the right to:

• Seek a Private Binding Ruling from the Australian Tax Office (ATO) to clarify any tax consequences specific to you under taxation laws and rely on the ruling;

• Object to any ATO assessment and, if unsuccessful, apply to the Administrative Review Tribunal (ART) for a review or appeal to the Federal Court; and

• ​Amend your tax returns within the relevant statutory time limits.

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The Taxpayer Charter also sets out your rights and entitlements under the law and what to expect when dealing with the ATO. For further details on the Charter, please visit the ATO website here.

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Your Responsibilities

You are responsible for:

• Full disclosure of all relevant information and accounting records;

• The reliability, accuracy and completeness of information provided to us and the ATO;

• Advising us of changes in any matter that is relevant to our services provided;

• Record keeping and retaining paperwork as long as required by the law;

• Cooperating with our reasonable requests and meeting due dates; and

• Complying with tax laws.

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Your Obligations

Under the Taxpayer's Charter, you have an obligation to the ATO to:

• Be truthful and act within the law;

• Meet lodgement and payment due dates;

• Keep full and proper records and provide them when needed;

• Ensure information provided to ATO is accurate, even if you are represented by a Tax Agent; and

• Cooperate with the ATO with any queries promptly.

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Failure to meet your obligations may result in additional taxes or penalties.

Further information can be found on the ATO website as follows:

Penalties | Record Keeping Requirements - Individuals . SMSF . Businesses