Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
There are a number of initiatives administered by the Tax Office which support the self-assessment system for taxpayers.
Self-assessment was introduced in 1992 and places responsibility on the taxpayer to show all their assessable income and claim only the deductions and offsets to which they are entitled in their annual income tax returns. The claims made in the tax return are accepted by the Tax Office, usually without review. The information is used to issue a tax refund or tax bill to the taxpayer.
To help provide more certainty to taxpayers before lodging a return, the Tax Office administers a number of initiatives which a taxpayer can access, which complement the self-assessment process. These include private rulings, public rulings, product rulings and the taxpayers’ charter.
If a taxpayer is concerned about the way tax law applies to their personal tax affairs, they may ask for a private ruling. A private ruling will relate only to that taxpayer’s situation. To obtain a private ruling, the taxpayer should write to the Tax Office describing their situation in detail and asking for advice. They may use the form Private ruling application form (non-tax professionals)– Nat 13742, available from the Publications Distribution Service on 1300 720 092 for the cost of a local call.
We will review the request and provide written advice that is binding on the Tax Office. The ruling only applies to the individual and the situation described in the request. The ruling is not binding on us where the full facts are not provided or the facts change.
Product rulings were introduced by the Tax Office in 1998 to provide prospective investors with some certainty as to the tax consequences of theirinvestment.
A product ruling outlines how the tax law applies to a particular business or investment arrangement. Rulings provide legally binding statements on the availability of the tax benefits of a proposed investment. Rulings are available to a potential investor before they commit their funds. We are bound by a product ruling only if the promoter implements the scheme exactly as set out in the application for a ruling.
The taxpayers’ charter is designed to help taxpayers become aware of their rights and sets out important taxpayer obligations. The taxpayers’ charter also tells taxpayers about the standards they can expect from the Tax Office and what they can do if they are dissatisfied with Tax Office decisions or actions. The taxpayers’ charter can be viewed on the Tax Office website and is available from the Publications Distribution Service on 1300 720 092.
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