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ATO default assessment and related penalty

We can assist you with your default assessment issue, even if we have not worked for you previously. Patrick Sheehan has dealt with numerous default assessment objections, and the related 75% penalty, both for the Australian Taxation Office and more recently for clients.

In his experience, the following are the most common questions asked by clients wanting to have their default assessment amended, or penalties reduced:


What can I do to reduce the 75% failure to provide a document penalty?

The 75% penalty is automatically applied, but if you can provide evidence that at least one of the following points are relevant, we can typically have it remitted in part or in full:

  • You made an honest mistake in believing that lodgement of a tax return was not required,
  • You had circumstances beyond your control that prevented you from lodging, or
  • The amount of the penalty is unjust.

What if the ATO got a portion of your default assessment incorrect?

Even if the ATO got a portion of the default assessment incorrect they may not amend your return unless you can show them that your proposed return is correct in its entirety. Therefore, it is up to you to show the ATO that the figures you are proposing are materially correct. When we prepare your objection we will create a package of documents for the ATO to ensure you have a better chance of success.


In summary, if you have received a default assessment and associated failure to provide a document penalty, and you would like a professional to review your situation, please contact us for an obligation free initial discussion.



Disclaimer: This document should not be interpreted as tax advice. All information is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.



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