OUR SERVICES
ATO Penalty Remission
The ATO can remit penalties and interest where there are good grounds. Our ATO penalty remission submissions document your circumstances and engage the ATO’s own criteria.
When will the ATO remit penalties?
Where you took reasonable care, cooperated, made a voluntary disclosure, or faced circumstances outside your control. Remission is discretionary, so the case has to be put. For example, the ATO lists serious illness, natural disasters and information you could not obtain from third parties as reasons it may remit a failure-to-lodge penalty (ATO: failure to lodge on time penalty).
Reference Case: several years of unlodged returns during a long illness, where the ATO removed the full penalty and the general interest charges.
How we build a remission case
We assemble the evidence and frame it against the ATO’s published remission guidelines, so the officer deciding it has everything needed to say yes.
Reference Case: an employer facing a 200 per cent Part 7 penalty on late super, which the ATO remitted in full after our submission.
What if remission is refused?
A refusal is not final. Where the decision is unreasonable or the reasons are thin, the penalty can be objected to and taken further (ATO: dispute interest or penalties).
Reference Case: a deduction audit where objection with legal argument restored a portion of the deductions.
WHAT WE HANDLE
ATO penalty remissions we prepare
Remission is the Commissioner’s discretion to reduce or remove a penalty or interest charge. It is not automatic, and it is not granted because a bill is inconvenient.
Instead, the ATO grants it where the facts fit the published grounds and the evidence is there to prove them. That is what a remission submission has to do, and it is where most self-prepared requests fall down.
OUR PROCESS
How we prepare a remission submission
Ask for remission with evidence attached. A letter explaining that the amount is unaffordable is not a ground and will not succeed on its own.
1. Separate the components
Shortfall penalty, failure to lodge penalty, GIC and shortfall interest are each remitted on different grounds and argued separately.
2. Identify the grounds
Illness, agent error, safe harbour, voluntary disclosure and circumstances beyond your control each have their own test.
3. Evidence every assertion
Medical records, correspondence with your agent, lodgement history and bank records. In practice, the ATO refuses assertions without documents.
4. Lodge and follow through
We put the submission, answer the ATO’s questions, and object where remission is refused without proper reasons.
FAQ
ATO penalty remission: frequently asked questions
What is penalty remission?
The ATO reducing or cancelling penalties it has imposed, on application and on the merits of your case.
When will the ATO remit penalties?
Where there is reasonable care, full cooperation, voluntary disclosure, or exceptional personal circumstances.
Can general interest charge be remitted?
Yes, in defined circumstances. However, the threshold is higher than for penalties, so the submission must be well made.
How do I apply for remission?
In writing, with supporting evidence tied to the ATO’s criteria. We prepare and lodge this for you.
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WHO WE ARE
Why Australian Tax Experts?
Facing a tax problem with the ATO can be one of the most stressful experiences in business or personal life. Whether it is an audit notice, a penalty assessment, or undeclared overseas income, the choices you make in the first days carry the most weight.
At Australian Tax Experts, our specialist tax lawyers and tax accountants work together on every matter, combining legal rigour with precise financial analysis. We do not hand your case between departments. You get both disciplines working in your interest from day one.
Since 2010 we have defended clients against the ATO across offshore income, business audits, superannuation disputes, penalty remissions and complex capital gains tax matters.
If you have a tax concern, whether small or serious, contact us for a confidential consultation. Early engagement is the single most important step you can take.
WATCH
Related videos
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A voluntary disclosure is the formal process of telling the ATO about an error, omission or unreported income before they find it.
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The General Interest Charge accrues daily, compounds relentlessly, and since 1 July 2025 is no longer tax deductible.
How Are ATO Penalties Calculated?
When an audit ends with extra tax to pay, administrative penalties and the General Interest Charge can double the bill. How ATO penalties are calculated.
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