ATO Small Business Review Service Now Permanent
April 27, 2021
Following its successful three-year trial program, the ATO’s independent review service is to become permanently available to small businesses.
The ATO on Friday announced that it will permanently instate its independent review service following a successful, three-year pilot program which scored the approval of its participants, whether they got the outcome they wanted or not.
“Small businesses who participated in our pilot told us they found the process to be fair and independent, irrespective of the independent review outcome, so this is a great result, and is a big part of why we are locking this service in permanently,” said Jeremy Geale, deputy commissioner at the ATO.
The service will be available to eligible businesses with an annual turnover of less than $10 million in relation to disputes about income tax, GST, excise, luxury car tax, wine equalisation tax, and fuel tax credits, but won’t cover superannuation or fringe benefits tax.
Since the pilot program’s inception, more than 1,200 small businesses have been offered the service, and more than 180 have actively used it.
It was designed to empower small businesses with an avenue to dispute auditing decisions made against them by the ATO, in a quick, cost-effective way. Mr Geale said that it’s critical that small businesses are afforded to do so, and are able to pursue a fair resolution with the ATO.
“Independence is critical when handling a dispute, so we ensure each and every independent review is done by an officer from a different part of the ATO who was not involved in the original audit.”
Mr Geale said that taxpayers will be able to request in-house facilitation at any stage of a dispute with the ATO. He also said that an independent review would take place prior to any amended assessment, and any resulting debt that’s raised.
Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, welcomed the ATO’s decision to offer the service to small business owners on a permanent basis, in line with his office’s advice to the Tax Office.
“I congratulate the ATO for taking a proactive approach with this commitment to help resolve small business tax disputes,” Mr Billson said. “The ATO has acted quickly to implement a key recommendation in our recently released report, A tax system that works for small business, which will help support small businesses when they disagree with an ATO audit position.”
It’s a position shared by Mr Billson’s predecessor, Kate Carnell, who in 2018 said she was pleased to see the ATO recognise that a service made available to large businesses could be helpful for small businesses dealing with tax, too.
“The fact that small business will now have an independent area of the ATO to consider matters afresh is an important step,” she said, “and one that we will watch to see whether it provides for informal discussion of issues in a way that avoids formal legal routes.”
Are you undercharging for your fees? We’ve got the five warning signs that can help you diagnose whether your prices are too low.
The Reserve Bank of Australia has lowered interest rates. What does a drop in interest rates mean for you, your business and your financial opportunities?
Proposed legislation from the Victorian Labor Government could offer your employees the right to work from home 2 days per week. We’ve outlined how to make the most of WFH.
Should you buy or lease your new equipment? Here are some pros and cons of each. We also can review your financial position, cashflow and cost base to decide whether buying or leasing is the right thing for your business.
The ATO’s updated Tax Time toolkit is your 101 guide to business taxes. We’ve summarised the key resources you can find in this toolkit, with links to the ATO site.
You’ve sold your business! But what happens now!? We’ve outlined five potential pathways your post-sale life could take, and how they help you find new goals and lifestyles.
Are you ready to sell your business? Here are six important ways to secure the best deal, through solid negotiation and a deep understanding of your core strengths as a company.
Is your business debt getting out of control? Come and talk to us about strategies for reducing debt and getting cashflow under control.
What will you do differently this year to enable your business to thrive? Conducting a past-year review with our experienced advisors will provide valuable insights for this year's goal-setting.
The Australian Taxation Office (ATO) has unveiled its compliance focus areas for the 2025 tax year, highlighting the importance of accurate claims and thorough record-keeping, particularly for small businesses and individuals.
