Lodging your tax return is an important yearly obligation, but sometimes mistakes happen or new information emerges after you’ve submitted it. In such cases, you may need to amend your lodged tax return to correct errors, include missed income, or claim additional deductions or offsets. Understanding when and how to request an amendment is essential to maintain compliance with the Australian Taxation Office (ATO) and avoid penalties or delays.
What Does It Mean to Amend a Tax Return?
Amending a tax return means making changes to the details you previously reported to the ATO. This can involve correcting errors, updating income amounts, adjusting deductions, or including information that was omitted initially. An amendment results in the ATO reassessing your tax position, which may lead to a change in your refund, tax payable, or no change at all.
When Should You Amend Your Tax Return?
You should consider amending your lodged tax return if:
- You omitted income: For example, income from a job, investment earnings, government payments, or foreign income that was not declared initially.
- You claimed incorrect deductions: Either claiming expenses you were not entitled to or forgetting to claim eligible deductions.
- Your personal details were incorrect: Such as your name, address, bank details, or dependent information.
- You received updated or corrected information: For example, a corrected payment summary or dividend statement.
- You made errors in reporting capital gains or losses: Such as forgetting to include a property sale or shares transaction.
- You are eligible for additional tax offsets or rebates that were not claimed.
- The ATO has issued a notice of assessment indicating discrepancies or adjustments.
Time Limits for Amending Your Tax Return
The ATO allows taxpayers to request amendments within specific time frames known as the amendment period. Generally, the limits are:
- Individuals: You can amend your tax return within two years from the date of the original assessment.
- Individuals aged 16 years or under at the time of lodgment: You have four years to request an amendment.
- For more complex cases: In certain circumstances, such as if you made a mistake due to fraud or evasion, there may be no time limit for amendments.
It is important to act promptly once you identify an error to avoid complications or interest and penalty charges.
How to Request an Amendment to Your Tax Return
There are several ways to amend your tax return, depending on how you originally lodged it and your preferences:
1. Online Through myGov
If you lodged your return online using myGov linked to the ATO, you can request an amendment easily by:
- Logging into your myGov account.
- Selecting the ATO service and navigating to the “Lodgments” section.
- Finding the tax return you wish to amend and selecting “Request an amendment.”
- Following the prompts to update the necessary details and submitting your request.
This is the fastest and most convenient method, with most amendments processed within 2 weeks.
2. Using a Registered Tax Agent
If you used a registered tax agent to lodge your tax return, contact them to discuss the amendment. They can submit the amendment request on your behalf through the ATO’s agent portal.
3. Paper Amendment Request
If you prefer, you can fill out the “Request for Amendment” form (available on the ATO website) and mail it to the ATO with any supporting documents. This method takes longer and is less commonly used in the digital age.
What Happens After You Request an Amendment?
Once your amendment request is received, the ATO will:
- Review the changes and reassess your tax return accordingly.
- Notify you of the outcome via your myGov inbox, mail, or through your tax agent.
- Issue an updated notice of assessment if your tax position changes.
- Adjust any refund payable or tax owing.
Processing times can vary but typically take 2 to 4 weeks if lodged online.
Can the ATO Amend Your Return?
In some cases, the ATO may initiate amendments if they detect errors or discrepancies in your lodged return during reviews or audits. They will notify you in writing before making any changes. If you disagree with the amendment, you can seek a review or appeal.
Common Mistakes That Often Require Amendments
- Failing to include all income sources, such as bank interest or government payments.
- Incorrectly claiming deductions that do not meet ATO criteria.
- Misreporting capital gains or losses.
- Not updating private health insurance details, resulting in Medicare Levy surcharge issues.
- Forgetting to report foreign income or investments.
Tips to Avoid the Need for Amendments
- Double-check your documents: Before lodging, ensure you have all payment summaries, statements, and receipts.
- Use pre-fill data: Rely on ATO’s pre-fill services via myGov to reduce errors.
- Keep clear records: Maintain all receipts and documents for at least five years.
- Seek expert help: Use a registered tax agent if your tax affairs are complicated.
- Review your return carefully: Take your time when completing your return, checking each section for accuracy.
Penalties and Interest for Errors
If you fail to amend an incorrect return that results in unpaid tax, the ATO may charge penalties and interest on the amount owing. Promptly amending your return and paying any additional tax can help minimise these charges.
Conclusion
Amending a lodged tax return is a common and necessary process for taxpayers who discover errors or omissions after submitting their original return. Acting promptly to request amendments through myGov, your tax agent, or by mail helps keep your tax affairs accurate and compliant.
Always review your tax return carefully before lodging and retain all supporting documents. When in doubt, seek assistance from the ATO or a professional tax adviser to reduce the risk of mistakes requiring amendments.
