The extension of time to revoke elections does not have any impact on due dates for income tax returns and for payment of income tax liabilities. However, if a revocation or change in election requires a taxpayer to amend their tax return and the amendment increases their liability, shortfall penalties and the GIC will generally not apply. On the other hand, if an amendment decreases a liability, the taxpayer may be entitled to interest on their tax overpayment.
We will observe the terms of ATO Practice Statement Law Administration PS LA 2005/9 in so far as it relates to amendments arising from the revision of elections. For example, provided a genuine attempt was made to correctly lodge the initial return, no shortfall penalty will apply to amendments made to the return because of a variation in the election. Similarly, no GIC will apply to that adjustment from the original due date until the return is lodged, provided the amended return is lodged within a reasonable period.