Default assessment

Default assessment issue

If the Annual Reconciliation is not submitted by the due date, a default assessment may be issued. A default assessment is based on estimated wages and includes penalties at the rate of 25 per cent plus the market rate of interest.

Reassessment

If the actual wages are subsequently provided, the assessment is recalculated and the 25 per cent penalty and interest is applied to the actual amount outstanding before any subsequent payments.

Letter of demand

If there is no response to the default assessment a letter of demand is issued with further penalties imposed before legal proceedings start to recover the debt.

Objection

You can lodge an objection against an assessment. You must lodge the objection with the Commissioner within 60 days after the assessment has been served. You must lodge an objection form (Gen-Form-04) and state fully and in detail the grounds on which the employer objects.

Further references

See Rulings GEN.001 and TAA-007v3.

Assistance

If you need further information on this topic, please contact our payroll tax enquiry service on 13 21 61.