ATO Penalty Remission Help
Factual Chronology, Legal Review & Evidence-Backed Submissions to Request Penalty Relief
Service at a Glance
Personalized scope & lodgementWage earners, investment property owners, CGT, crypto & standard returns
100% online video meetings (Outlook Calendar) or in-person
Direct electronic ATO portal lodgement by Registered Tax Agent
Draft explained and authorized by you before electronic submission
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What is ATO penalty remission?
Remission is the ATO's decision to reduce or remove a penalty that has been imposed. It is discretionary and depends on the facts and the legal and administrative rules for that penalty. A request should identify the penalty, explain why the relevant obligation was not met and include evidence of the circumstances and steps taken to put matters right.
Discretionary Administrative Relief
Remission is the ATO's decision to reduce or remove a penalty that has been imposed.
It is discretionary and depends on the facts and the legal and administrative rules for that penalty.
Causal Explanation & Remediation
A request should identify the penalty, explain why the relevant obligation was not met and include evidence of the circumstances and steps taken to put matters right.
The ATO must be satisfied that non-compliance was not reckless and that full lodgement has now occurred.
Remission vs Formal Dispute
It is important to distinguish remission from disputing whether a penalty was correctly imposed.
An objection or another review pathway may be appropriate if the underlying facts or assessment are in dispute. We can help identify the issue and the appropriate next step.
Which penalties may need review?
Clients commonly seek assistance after receiving a failure-to-lodge penalty for an overdue tax return or activity statement. Other administrative penalties can involve inaccurate statements or different obligations and may have different remission or review pathways. We check the actual ATO notice rather than assuming every penalty follows the same procedure.
Failure-to-Lodge (FTL) Penalties
Clients commonly seek assistance after receiving a failure-to-lodge penalty for an overdue tax return or activity statement.
Imposed automatically by ATO systems when statutory due dates are missed. Calculated in 28-day penalty units up to legislative caps.
False or Misleading Statement Penalties
Other administrative penalties can involve inaccurate statements or different obligations and may have different remission or review pathways.
Assessed when an omitted income amount or disallowed deduction resulted from a failure to take reasonable care, recklessness, or intentional disregard.
GIC & SIC (Interest vs Penalties)
General interest charge and shortfall interest charge are interest amounts, not failure-to-lodge penalties. They have separate remission considerations.
If your concern is primarily unpaid tax or interest, we will identify that separately rather than describing all ATO charges as a penalty.
Remission is different from a payment arrangement
Penalty remission asks the ATO to reduce or remove a penalty. A payment arrangement deals with how an amount will be paid, while an objection disputes an assessment or reviewable decision. One matter can involve more than one pathway, so the notice and account should be reviewed before anything is submitted.
1. Penalty Remission
Penalty remission asks the ATO to reduce or remove a penalty.
Applied when a penalty is legally valid, but fair and equitable circumstances justify waiving it.
2. Payment Arrangement
A payment arrangement deals with how an amount will be paid.
Structures affordable monthly or weekly instalments for valid debts you cannot immediately pay in full.
3. Formal Objection (Part IVC)
An objection disputes an assessment or reviewable decision.
Challanges the statutory or factual correctness of an ATO decision or assessment under tax law.
What does the ATO consider for late lodgment?
The ATO can remit all or part of a failure-to-lodge penalty based on individual circumstances. It generally expects outstanding documents to be lodged before you request remission. Relevant facts can include the cause and duration of the delay, whether the event was outside your control, the steps taken to comply and your lodgment history.
Cause & Duration of the Delay
Whether the delay was brief or prolonged, and what specific factors directly triggered the interruption.
Events Outside Your Control
Severe illness, natural disasters, serious accidents, sudden bereavement, or catastrophic IT failure.
Steps Taken to Rectify & Comply
Evidence of proactive efforts to seek assistance, reconstruct data, and bring filings up to date promptly once the issue ended.
Historical Lodgment Track Record
Whether you have an otherwise compliant track record with the ATO or a history of repeated unprompted defaults.
Why Disruption Alone Does Not Guarantee Remission:
An illness, disruption or other difficult event does not guarantee approval. The request should explain how that event affected the specific obligation and period, supported where possible by records. It should also state when the problem was resolved and what action was taken afterward.
Still Have Unlodged Returns or Activity Statements?
If returns are still outstanding, our overdue tax returns service deals with preparing and lodging those returns before a penalty remission request is considered.
Preparing a supported request
We start with the penalty notice, the original due date and the date the outstanding document was lodged or the error corrected. We then prepare a chronology that connects the events to the non-compliance. Supporting material may include:
ATO Notices & Account Statements
"ATO notices and relevant account statements"
Original Notice of Penalty, running balance account statements, and integrated client account transaction histories.
Lodgment Confirmations
"Lodgment confirmations and prior correspondence"
Tax agent lodgment receipts, time-stamped portal confirmations, and copies of late-filed returns showing immediate remediation.
Medical & Third-Party Evidence
"Medical or other third-party evidence, where relevant and available"
Hospital admission letters, certificates from registered medical practitioners, insurance claims, or legal certificates.
Records of Disruptive Events
"Records of events that prevented compliance"
Disaster relief notices, severe weather reports, cyber-attack logs, bank platform downtime records, or bereavement notices.
Steps Taken to Resolve the Issue
"Evidence of steps taken to resolve the issue"
Records proving appointment of registered tax agents, reconstruction of lost bookkeeping, and implementation of compliance systems.
Factual Rigour Protects Your Credibility:
Provide an accurate account. Exaggerated claims or documents that do not relate to the relevant period can weaken a request. We will explain where the available evidence does not support the reason proposed.
What happens after the request?
The ATO may allow the request in full, allow it in part or decline it. Its decision and any available review rights should be considered against the notice received. A remission request does not, by itself, cancel the underlying tax or suspend every other obligation.
Allowed in Full
The ATO cancels 100% of the penalty amount.
The entire penalty is credited back against your running balance account, reducing the outstanding liability.
Allowed in Part
The ATO reduces the penalty by a proportion.
The ATO acknowledges extenuating circumstances for part of the delay while maintaining a residual penalty for unexcused delays.
Declined with Review Rights
The ATO refuses remission and gives written reasons.
Its decision and any available review rights should be considered against the notice received to evaluate further administrative review.
Did an Inaccurate Return Cause a Tax Shortfall?
Where an inaccurate return caused a tax shortfall, a voluntary disclosure may involve a distinct penalty outcome. Our voluntary disclosure page addresses how to tell the ATO about an error; it is not a substitute for a remission request about an already imposed penalty.
How Financially Up can help
We review the nature of the charge, assess the relevant facts, identify missing evidence and prepare a concise request aligned with the ATO's process. We can also help you understand the decision and discuss available next steps. The scope and likely value of further work can be agreed after we review your notice.
Review the Nature of the Charge
We analyze your ATO notice to classify whether the charge is a Failure-to-Lodge penalty, an administrative penalty, or statutory interest (GIC/SIC).
Assess Facts & Identify Missing Evidence
We test your chronological timeline against ATO administrative guidelines, identifying documentary gaps and gathering third-party evidence.
Prepare a Concise, Aligned Request
We draft a persuasive, factual remission submission directly referencing ATO Law Administration Practice Statements (PS LA).
Evaluate Decision & Advise Next Steps
We interpret the ATO's written determination and discuss available next steps, ensuring the scope and likely value of further work are agreed upfront.
Why choose Financially Up Pty Ltd?
Financially Up is a registered tax agent with more than 10 years of experience. Our team includes CPA and IPA members and supports clients Australia-wide through online and in-person appointments. We focus on the actual notice, relevant chronology and available evidence without promising that remission will be granted.
Registered Tax Agent
Officially registered with the Tax Practitioners Board (TPB #26242127), authorized to prepare formal remission submissions directly to the ATO.
CPA & IPA Members
Our team includes qualified members of CPA Australia and the Institute of Public Accountants (IPA), ensuring rigorous factual and legal alignment.
10+ Years of Experience
More than a decade of proven expertise helping taxpayers resolve failure-to-lodge penalties, interest charges, and account compliance notices.
Australia-Wide Delivery
Supporting clients across Australia via secure digital meetings, with head office consultations at Australia.
Received an ATO Penalty Notice?
Call 1300 328 316 for a Professional Notice Assessment
Frequently Asked Questions
Find fast answers to common questions about our individual tax lodgements, deductions, and CPA services.
The ATO may remit all or part of an imposed penalty based on the circumstances. You should generally lodge the outstanding document before seeking remission. The decision is not guaranteed.
Related ATO Relief & Compliance Services
ATO Debt Help
Payment plans, GIC remission & recovery action defence.
ATO Audit Support
Audit questionnaires, records substantiation & ATO liaison.
Overdue Tax Returns
Multi-year catch up returns, missing records reconstruction.
Voluntary Disclosure
Correcting tax errors proactively to minimize penalties.
ATO Payment Plan Help
Structuring automated monthly or weekly instalment plans.