Amended assessment

Unless you respond with additional information within the timeframe specified in your letter, we will issue a notice of amended assessment.

If we make adjustments to your tax return we will issue a notice of amended assessment advising you of any amounts payable and how to pay. The due date for payment is 21 days after we notify you of the amounts.

Your right to a written explanation

You are entitled to request a written explanation regarding any adverse adjustments made to your tax return.

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Your right to request a review

You can request a review of our decision if you believe the amended assessment is incorrect and/or you have information not previously available during the initial review.

Your objection rights will not be affected.

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Paying the debt in instalments

If you cannot pay your tax debt on time, you may be eligible to enter into a payment plan.

Our Payment plan calculator can help you work out a suitable payment scenario based on your circumstances. You can use it as a guide to set up a payment plan.

For debts $100,000 or less, you may be able to use our online services or our automated phone service (13 72 26 for businesses and 13 28 65 for individuals) to set up a payment plan.

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Penalties and interest for errors and omissions

If we adjust your tax return, a shortfall interest charge may be payable on any extra tax owing. This amount will be shown on your notice of amended assessment.

The interest charge is calculated on a daily compounding basis on any overdue amounts. The interest charge is calculated by applying the interest rate, which is determined quarterly, to the overdue amount.

Interest charges are designed to:

  • encourage taxpayers to pay their tax liabilities by the due date
  • ensure that taxpayers who don't pay their tax liabilities on time, do not get an advantage over those who pay in full and on time
  • compensate the government for the effect of late payments.

If you receive your notice of assessment and have incurred shortfall interest charges, you can request for these to be remitted. You will need to tell us why you think these should be remitted and provide evidence to justify your request. Each application is reviewed on a case by case basis before a decision is made.

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Shortfall interest charge deduction

You can claim a deduction for the shortfall interest charge (SIC) in the income year in which it is incurred. Any delays in starting a review of your tax records will be a relevant factor when we consider the remission of SIC. You can find the amount of SIC you incurred and paid by checking the ATO statements of account we sent to you.

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Last modified: 08 Aug 2016QC 41732