Can you appeal an ATO decision in Australia?

Receiving an unexpected tax bill or an assessment you disagree with from the ATO can be stressful, particularly if you are far from home. The good news is that the Australian tax system provides a formal process for challenging ATO decisions, and working holiday makers have the same rights as any other taxpayer.

When would you appeal an ATO decision?

Common reasons include receiving a tax assessment that appears incorrect based on your income and visa status, having a legitimate deduction disallowed, being told you owe tax that you do not believe you owe, or receiving a penalty you think has been applied unfairly.

Appeals must be based on facts, documents, and arguments grounded in the relevant legislation. If you have evidence that the ATO has made an error, you have a right to put that case forward.

The objection process

The first step is to lodge a formal objection — a written submission to the ATO explaining why you believe the decision is wrong, with supporting documentation. You must lodge your objection within a set time limit, usually 60 days from the date of the assessment, though extensions can be requested.

The ATO will review your objection and issue a formal response, either allowing it in full, in part, or disallowing it. This process can take up to 60 business days.

If the objection is unsuccessful

If your objection is disallowed, you can escalate to the Administrative Appeals Tribunal or the Federal Court. These are independent bodies that can review the ATO's decision. For most working holiday makers, the objection process at the ATO level is the appropriate step — tribunal and court proceedings involve more complexity and cost.

Penalties and interest during a dispute

Interest may continue to accumulate on the disputed amount while the case is being reviewed. Depending on the outcome, this interest may ultimately be waived if the decision goes in your favour.

The role of a tax agent in disputes

A registered tax agent can prepare and lodge a formal objection on your behalf and communicate with the ATO throughout the process. For working holiday makers who have already left Australia, having a tax agent manage the process remotely is often the most practical solution.

If you receive correspondence from the ATO that you are unsure about, do not ignore it. The time limits for objections are strict.

Need help?

Dealing with an ATO issue and not sure what to do?

Our team helps working holiday makers navigate ATO matters including assessments and disputes. Talk to us on WhatsApp.