The tax laws authorise the ATO to impose administrative penalties for conduct such as not taking reasonable care in claiming a deduction to which a taxpayer is not entitled or making a false or misleading statement. The ATO says taxpayers dissatisfied with a penalty can generally ask the ATO to reduce or cancel it.

The ATO has provided updated information (as at 4 August 2017) on:

  • How to request a remission of penalty.
  • Disputing a penalty through the objection process.
  • How the ATO assesses a request for reduction.
  • How the ATO advises taxpayers of its decision.
  • Further action taxpayers can take.

[ATO website: announcement; LTN 4/8/17]