Can you appeal an ATO decision in Australia?

When would you appeal an ATO decision?

Common reasons to appeal:

• Tax assessment showing tax owed that you believe is incorrect
• A legitimate deduction was disallowed
• A penalty was applied unfairly
• Your residency status was misclassified
• Income amounts in the assessment do not match your records
• Refund was reduced or denied unexpectedly

Appeals are not for simple errors you made (those need an amendment, not an objection). Appeals are for situations where you disagree with an ATO position on the law or the facts.

What is the formal objection process?

The first step in any appeal is a formal objection:

1. Written submission identifying the decision being challenged
2. Facts and arguments supporting your position
3. Supporting documentation attached
4. Must be lodged within 60 days of the original assessment

The ATO reviews and issues a formal response:

• Allow in full: your position accepted
• Allow in part: partial agreement
• Disallow: rejected entirely

Processing typically takes up to 60 business days.

What happens if your objection is unsuccessful?

If the ATO disallows your objection, escalation options include:

• Administrative Appeals Tribunal (AAT): independent review body
• Federal Court: for matters of significant legal complexity
• Inspector-General of Taxation: for procedural complaints

For most working holiday makers, AAT review is the practical next step. Federal Court proceedings involve significant cost and are rarely worth pursuing for individual matters.

Do interest and penalties accumulate during a dispute?

Yes. While the appeal is being decided:

• General Interest Charge (GIC) accrues on disputed amounts
• Penalties may continue
• The ATO may continue collection action unless paused

If your appeal succeeds, the GIC and penalties on the disputed portion may be waived. If it fails, you owe the original amount plus accumulated interest.

We can request deferment of collection while the appeal is pending.

How do we handle ATO appeals for working holiday makers?

Our process:

1. Review the ATO decision and assess the legal basis for objection
2. Gather supporting documentation
3. Draft and lodge the formal objection within the 60-day window
4. Communicate with the ATO throughout the review
5. Receive the outcome and advise on next steps
6. Escalate to AAT if needed

This works from overseas. We have managed objections for working holiday makers from every continent.

What should you do if you receive ATO correspondence?

Do not ignore it:

• Read the document carefully
• Note the date of the assessment
• Calculate when the 60-day window closes
• Get in touch with our team immediately if you disagree
• Send us a copy of the document

The 60-day window is strict. Missing it makes objections much harder.

If you are unsure whether the ATO is correct, send the correspondence to us before deciding. Sometimes the ATO is right and the best path is to accept the decision. We help you assess this properly.