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As humans, we can all be prone to forgetting/missing important things – our keys, wallets, or more importantly, when we are lodging our tax returns, a LARGE tax deduction or tax offset! (just as a side note, for this reason Cashmanagement sends out a detailed checklist, to minimise the risk of clients forgetting important information required for their tax returns).

The ATO acknowledges this small flaw in human behavior and makes allowances for us to lodge tax return amendments. However there’s a catch! We MUST make those tax return amendments within the reasonable time limits set out by the ATO:

For individuals and small businesses the time limit is generally two years, and for other taxpayers four years, from the day after the ATO gives you the notice of assessment (generally taken to be the date on the notice). For example, you’re a sole trader and receive a notice of assessment dated 12 November, 2010. Your two-year amendment period starts on 13 November 2010 (the day after the date on the notice) and ends two years later, 12 November 2012, so you have until that day to lodge a request for an amendment to that assessment.

This time limit gives you certainty about your tax affairs because it means the ATO can’t amend your tax assessment after the time limit has passed (except in some exceptional situations such as evasion or fraud). (ATO QC 33803)

If you are unsure about your time limits or would like Cashmanagement to lodge a tax return amendment, please contact us on info@cashmanagement.com.au or 08 94185562.