The notice of assessment ATO send you is an itemized account of the amount of tax you owe on your taxable income. It also contains other details that are not part of the assessment, such as the amount of credit you have for tax already paid during the income year.
When you get your notice of assessment, you should ensure everything is correct. In general, unless you are using electronic funds transfer (EFT), the bottom section of your notice of assessment will be either your refund cheque or, if you owe tax, your payment opinion.
In some cases, ATO will send you a statement of account with your notice of assessment. If we do, we will join your refund cheque or your payment advice to your statement of account.
ATO will send you a statement of account with your notice of assessment when your bank account balance is different to the result of your assessment. This can happen when:
- you incurred a penalty or general interest charge
- we credited interest amounts to you
- we offset credits to other tax debts (or debts you have with other government agencies)
- you have an account opening balance that is not zero
- You lodged returns for multiple financial years on the same day.
Under the law, ATO has a period of time to review your tax return. During this time, we may increase or decrease the amount of tax payable (or refundable) on your first notice of assessment. This review period is usually two years, but, in certain situation, it can be four years.