What is administratively binding advice?
Some laws we administer don't enable us to provide advice in a legally binding form. But, in limited circumstances we provide administratively binding advice in relation to these laws in the interest of assisting taxpayers to the fullest extent possible. We consider ourselves administratively bound by this advice.
If you would like to discuss your issue with us prior to applying, you can submit an early engagement for advice request.
Can I rely on administratively binding advice?
While administratively binding advice is not legally binding on us, we do stand by our advice and will not depart from it unless:
- there have been legislative changes since the advice was given
- a tribunal or court decision has affected our interpretation of the law since the advice was given
- the advice is no longer appropriate for other reasons.
If you follow the advice, but we later find out that it doesn't apply the law correctly to you and none of the points above apply, you'll be protected from having to repay amounts of tax that would otherwise be payable and any penalties and interest on those amounts.
For more information, see:
- How our advice and guidance protects you
- PS LA 2008/3 Attachment B Provision of advice and guidance by the ATO.
How to apply for administratively binding advice
To apply for administratively binding advice, see Applying for a private ruling.