What to Do If You Receive a GST ATO Audit, Review | Fehily Advisory

What Is a GST ATO Audit, Review or Assessment?

The ATO uses several processes to monitor and assess GST compliance:

• A GST ATO audit is the most formal, involving a detailed examination of your GST reporting and any relevant documents.

• An ATO GST review, on the other hand, is typically less intensive and may focus on specific transactions or just on a particular period.

• A GST assessment from the ATO is a formal determination of the GST liability the ATO believes you owe.

Each process involves different tasks and timelines, so understanding which one applies to your situation matters.

What to Do When You Receive a GST Audit or Review Notice

The first thing to do when you receive a GST ATO audit notice or any ATO GST correspondence is to read it carefully and note any key details or deadlines. The worst thing you can do is simply ignore it, as the ATO will proceed regardless, and late or absent responses can result in higher penalties.

Once you've read the letter, knowing what to do next is key. Before anything else, we would recommend locating and organising your GST audit documents, including BAS statements, bank statements, tax returns, contracts, and any paperwork used to prepare your submissions. The ATO will typically request records covering the period under review, often going back four years, so ensure that these are easily accessible.

Avoid making voluntary contributions or providing additional information before you have sought advice, as what you say and provide in the early stages can shape the direction and outcome of the audit.

How to Respond to an ATO GST Assessment

If you have received notice of a GST assessment from the ATO, you need to be aware of your rights and obligations. You can request the ATO's reasons for the assessment and, if you disagree, you may lodge a formal objection. The GST objection process has strict time limits, generally 60 days from the date of the initial notice being sent, so acting as quickly as possible is important.

Understanding how to respond to a GST audit or assessment also means knowing what is worth contesting and what is not. An experienced specialist can assess the strength of your position, identify any technical arguments available to you, and advise on which option is more appropriate.

When to Seek GST Audit Representation

Not all GST reviews require specialist intervention, but many benefit from it. If the amount of money involved is considerable, the issues are technically complex, or the ATO has raised concerns about your reporting methodology, it is worth engaging an independent GST specialist early.

Fehily Advisory provides GST audit representation for businesses across Australia. Working with a GST expert does not mean replacing your existing accountant or lawyer. Instead, it adds a layer of specialist expertise to the team already supporting you. Our GST ATO dispute resolution service covers the full process, from initial ATO contact through to objection and even litigation support.