You may receive default assessment warning letters for your clients who have overdue lodgment obligations - for these clients, we have evidence that they received taxable income in the relevant periods.
If the overdue lodgment obligations are not lodged by the date specified in the letter, we will issue default assessments for these clients based on the income included in the letter.
If we issue a default assessment to any of your clients, they may incur the following:
- failure to lodge on time penalties
- administrative penalties of 75% of the tax-related liability from the default assessment - the penalty may be reduced by taking into account any pay as you go (PAYG) credit and any other tax credits available
- administrative penalties may increase by 20% if your client has had a penalty previously applied for a default assessment.
What you need to do
If you receive a letter for any of your clients, make sure they are aware of:
- the impending default assessment, and
- the need to lodge their relevant lodgment obligations by the specified date.
If you disagree with the figures
The letter provides details of income, tax payable, and an administrative penalty that we will use to issue the default assessment.
If you do not agree with the figures, you should lodge the relevant lodgment obligations using the figures you believe are correct before the notice of the default assessment is issued.
The warning letter is not an assessment - as a result, you cannot object to this letter.
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If the relevant lodgment obligations have been lodged recently, you do not need to take any further action.
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Last Modified: Tuesday, 21 May 2013