What to Do If You Disagree with Your Notice of Assessment

Receiving your Notice of Assessment from the Australian Taxation Office (ATO) is a standard part of completing your tax return. It confirms the ATO’s calculation of your income, tax payable, credits, and deductions for the financial year. Most of the time, everything matches what you expected. But sometimes, you might open your assessment and notice something doesn’t look right. Maybe your refund is smaller than expected, or perhaps the ATO says you owe money when you thought you’d already paid enough tax.

If this happens, don’t panic. You have options. In Australia, you have the right to question, review, or dispute your Notice of Assessment if you believe it’s incorrect. This guide explains, in simple terms, what to do when you disagree with your NOA, how to handle the situation calmly, and what steps to take to resolve the issue.

Understanding the Notice of Assessment

Before you decide to dispute your Notice of Assessment, it’s important to understand what it is and how the ATO arrives at the final figures. Your NOA summarizes the outcome of your lodged tax return. It shows your total taxable income, any deductions or credits applied, and whether you owe additional tax or are entitled to a refund.

The ATO processes millions of tax returns each year, and while their systems are highly accurate, mistakes or discrepancies can occasionally happen. These can occur for a variety of reasons  missing employer information, mismatched pre-fill data, incorrect deduction claims, or updates made by third parties after you lodged your return.

Sometimes, the ATO might also make adjustments if they believe certain details in your return need to be corrected. When this happens, your Notice of Assessment will include an explanation of any changes made to your original return.

Why You Might Disagree with Your Notice of Assessment

There are several common reasons people find themselves disagreeing with their Notice of Assessment.

You might notice the ATO has added or removed income items you didn’t expect. This could happen if your employer or financial institution reported different figures from those in your return. Sometimes, deductions or offsets may not appear as claimed because of calculation differences or missing documentation.

In some cases, the ATO might have corrected an error in your tax return without notifying you before issuing the assessment. Even a simple clerical error or outdated bank details can change the numbers on your NOA.

Whatever the reason, it’s important to remember that disagreeing with your assessment doesn’t mean you’ve done something wrong. It simply means there’s a difference that needs to be reviewed and resolved.

Step 1: Read Your Notice of Assessment Carefully

When you receive your Notice of Assessment, take time to read it thoroughly before taking any action. The ATO clearly outlines the key figures, including your taxable income, credits, offsets, and any adjustments made.

Look closely at the explanation section of your NOA. If the ATO made a change to your tax return, it should include a note explaining why. This might mention missing information, incorrect data, or adjustments to your deductions or income.

Comparing your original tax return with the figures on your assessment is the best way to identify exactly where the difference lies. If you used myGov to lodge your return, you can view both your return and assessment side by side for an easy comparison.

Step 2: Check for Common Issues

Before lodging a formal dispute, it’s worth checking for a few simple causes that could explain the difference.

Make sure all your employer income, bank interest, and investment details match the information shown in your myGov account. Sometimes, data updates after lodgement can cause the ATO to recalculate your figures.

If a deduction or offset is missing, review your supporting documents. The ATO may disallow certain claims if they don’t have sufficient evidence or if they exceed allowable limits.

It’s also worth checking whether your Medicare levy or surcharge has been applied correctly. These items can affect the final tax amount and sometimes catch taxpayers by surprise.

If, after reviewing everything, the issue still doesn’t make sense, it’s time to move on to the next step.

Step 3: Contact the Australian Taxation Office

The simplest way to start resolving a disagreement with your Notice of Assessment is to contact the ATO directly. Sometimes, a quick phone call can clear up misunderstandings or provide an explanation that makes sense of the figures.

You can call the ATO on 13 28 61 for individual tax inquiries. Have your tax file number and NOA handy, as the officer may ask for details from your assessment to verify your identity.

Explain calmly that you’ve reviewed your NOA and would like to understand why certain amounts differ from your original tax return. In many cases, the ATO can provide an explanation over the phone or confirm if an adjustment was made based on new information.

If they find an error on their end, they can correct it without you needing to lodge a formal objection. But if you still disagree with their explanation, you can proceed with a written request for review.

Step 4: Request a Review or Amendment

If you still believe your Notice of Assessment is incorrect, you can request an amendment to your tax return. This is a formal way of asking the ATO to review your return and make any necessary corrections.

You can request an amendment online through your myGov account linked to the ATO. Simply select your tax return and choose the “Amend” option. Provide details about the changes you believe are required and include any supporting documents, such as payment summaries or receipts.

For most individual taxpayers, you have up to two years from the date of your assessment to request an amendment. If you use a registered tax agent, they can help you prepare and lodge the amendment correctly.

Once submitted, the ATO will review your request and issue a new Notice of Assessment if changes are made. The review process can take a few weeks, depending on the complexity of your case.

Step 5: Lodge a Formal Objection

If you’ve contacted the ATO and requested an amendment but still disagree with their decision, the next step is to lodge a formal objection. This is a more official process that allows you to challenge your Notice of Assessment on legal or factual grounds.

A formal objection must be submitted in writing, either online through myGov or by post. You’ll need to clearly explain why you disagree with the assessment, what you believe the correct outcome should be, and provide evidence to support your claim.

It’s important to be clear, factual, and polite in your objection. The ATO will assign your case to an independent officer who wasn’t involved in the original assessment. They’ll review all information and make a decision based on the evidence provided.

The ATO aims to resolve most objections within 56 days, though complex cases can take longer. Once your objection has been reviewed, you’ll receive a written notice outlining the outcome and the reasons behind it.

If your objection is allowed, the ATO will issue an amended Notice of Assessment reflecting the corrected figures. If it’s disallowed and you still disagree, you can take your case further.

Step 6: Escalate to the Administrative Appeals Tribunal

If your objection is disallowed and you still believe your Notice of Assessment is wrong, you have the right to appeal to the Administrative Appeals Tribunal (AAT).

The AAT is an independent body that reviews decisions made by government agencies, including the ATO. You must lodge your appeal within 60 days of receiving the ATO’s objection decision.

During the process, the AAT will review both sides of the case  your submission and the ATO’s explanation  before making a decision. You don’t always need a lawyer or accountant to represent you, though professional advice can be helpful for complex matters.

The AAT can affirm the ATO’s decision, vary it, or set it aside and substitute a new one. Once the AAT reaches a decision, it’s legally binding unless further appealed in court.

Step 7: Seek Professional Advice

If you’re unsure about how to proceed, it’s always a good idea to seek help from a registered tax agent or accountant. These professionals deal with the ATO regularly and understand how to interpret and respond to your Notice of Assessment.

A tax agent can help you prepare your objection, gather supporting documents, and communicate with the ATO on your behalf. They can also ensure your claims are accurate and that you meet all the deadlines involved in the process.

If your situation involves complex business income, capital gains, or other detailed tax matters, professional advice can save you both time and stress.

Step 8: Keep Records and Stay Organised

Throughout the process of disputing your Notice of Assessment, it’s essential to keep copies of all correspondence, supporting documents, and ATO responses.

Maintain a folder (digital or physical) with all relevant details, including your tax return, the original assessment, amendment requests, and objection letters. These records will be useful if your case progresses to review or appeal stages.

Good record-keeping also helps you stay informed and ensures you can easily track the progress of your case.

Step 9: Stay Patient and Professional

Dealing with a disagreement over your Notice of Assessment can feel frustrating, but it’s important to stay patient. The process can take some time, especially if your case requires review or appeal.

Being polite and professional when communicating with the ATO or your tax agent will help ensure the process goes smoothly. The ATO’s goal is to resolve genuine disputes fairly, and staying calm helps you focus on presenting your case clearly.

Final Thoughts

Disagreeing with your Notice of Assessment doesn’t have to be stressful or confusing. Mistakes can happen, but the good news is that the ATO provides clear processes to review and correct them.

The key is to act quickly, gather your evidence, and communicate clearly. Whether it’s a simple misunderstanding or a more complex issue, taking the right steps ensures your tax record is accurate and fair.

By carefully reading your Notice of Assessment, checking your figures, and following up through the proper channels, you can resolve any issues confidently. Remember, you have rights as a taxpayer, and the system is designed to support you if you believe something isn’t right.

So next time your assessment doesn’t look quite as expected, don’t ignore it take control, ask questions, and make sure your tax outcome truly reflects your situation.