The Australian Taxation Office (ATO) has recently extended the amendment periods for certain taxpayers—a change that could make a big difference for individuals and business owners alike.
What’s Changed?
Previously, most individuals and small to medium businesses had 2 years from the date of their notice of assessment to request an amendment to their tax return. Now, for income years starting on or after 1 July 2024, eligible taxpayers will have up to 4 years to make changes.
Who Does This Affect?
The extended 4-year amendment period applies to:
- Individuals and sole traders
- Small and medium businesses with an aggregated turnover of less than $50 million
- Trusts and companies that meet the small business criteria
This change gives taxpayers more breathing room to correct errors, claim missed deductions or adjust income declarations—without needing to go through the more complex objection process.
Why It Matters
- More time to fix honest mistakes
- Reduced pressure during tax time
- Less reliance on formal objections or appeals
- Greater flexibility for evolving business circumstances
It’s important to note that this extension applies only to amendments initiated by the taxpayer—not the ATO. The ATO still generally has 2 years to amend assessments unless other provisions apply (e.g. fraud or evasion).
Need Help?
If you’re unsure whether you qualify for the extended amendment period or want to review a past return, we’re here to help. Whether it’s a simple question or a full review, don’t hesitate to reach out.Let’s make sure your tax affairs are accurate, up to date, and working in your favour. Give our office a call on 07 5494 9173.
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