A notice of assessment from the Australian Taxation Office (ATO) is an official letter confirming the ATO's review and final decision about your tax return. It shows whether you owe money or will receive a refund.
The ATO processes your tax return and compares it against their records. The notice of assessment confirms whether your return is correct, underpaid, or overpaid. You'll receive this notice within 2 weeks of lodging your return online, or up to 30 days if you lodged a paper return.
For example, if you claimed $5,000 in work-related expenses but the ATO finds only $3,000 is allowable, your notice of assessment will show an adjusted taxable income and a higher tax bill.
There are two primary types of notices:
| Type | Description | Typical Timeframe |
|---|---|---|
| Standard Notice of Assessment | Issued after the ATO reviews your tax return. Shows your assessable income, deductions, and tax payable or refund amount. | 2 weeks to 30 days |
| Amended Notice of Assessment | Issued if the ATO makes changes after the initial assessment, such as correcting an error or applying new information. | Varies, often months later |
Many people confuse the notice of assessment with a notice of proposed assessment, which is an earlier step in the process. The proposed assessment is a draft, while the notice of assessment is final.
Another mistake is ignoring the notice. Even if you disagree with the assessment, you must respond within 60 days to request an amendment or appeal.
If you owe money, you must pay by the due date shown on the notice. If you're entitled to a refund, the ATO will issue it within 2 weeks of sending the notice.
If you believe the assessment is incorrect, you can request an amendment online through your myGov account linked to the ATO. Provide evidence to support your claim, such as receipts or records.
I once received a notice showing a higher tax bill because the ATO didn't account for a deduction I'd claimed. I provided the receipt, and the ATO corrected the assessment within a week.