Running a business means juggling client work, staff needs and cash flow, but nothing grabs your attention quite like the moment the ATO Notice of Assessment lands in your myGov inbox. This important document confirms your income tax position for the financial year and tells you whether you can look forward to a tax refund or need to pay tax by the due date. In this guide we unpack the Notice of Assessment, show you how to align it with your own tax records, and walk through practical steps so you can meet your tax obligations with confidence.
Why Your Notice of Assessment Matters
The Notice of Assessment (often shortened to NOA) is the ATO’s summary of your tax return. Think of it as the “report card” on the information you lodged.
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What the Notice Shows
Your NOA includes several headline figures:
Total income: all reported income for the tax year, including sales, bank interest and franking credits.
Taxable income: your total income minus allowable deductions.
Income tax and offsets: the tax the ATO calculates, reduced by any middle income tax offset, small-business tax offset or other credits.
Tax payable or refund: whether you owe money or are due a direct deposit refund into your nominated bank account.
Payment advice: details of how much tax to pay and the deadline if you receive a tax bill.
Key Dates and Processing Timeframes
If you lodge online, processing usually takes about two weeks; paper lodgements can take up to 50 business days. Your NOA arrives in your myGov Inbox as soon as the tax assessment is finalised, and you’ll also see an account summary in ATO online services. The notice tells you the payment due date, so diarise it early to avoid late interest charges.
Aligning Your Business Records With the ATO
Reconciling the NOA with your internal books ensures everything tallies and protects you from future audit surprises.
Start With Total Income
Match the total income on the notice against your sales ledger, bank statements and other revenue sources. If you run accrual accounts but lodge on a cash basis, timing differences can arise—note them clearly so they do not look like unreported income.
Double-Check GST and Franking Credits
GST-registered businesses should confirm that GST-inclusive and GST-free amounts have been treated correctly across Business Activity Statements and the income tax return. Likewise, verify franking credits from Australian dividends: the notice shows the credits the ATO allowed, so reconcile these to your dividend statements.
Verify Deductions and Offsets
Review each deduction claimed—rent, utilities, depreciation, motor vehicle costs—and make sure the underlying invoices or logbooks are on file. Cross-check any middle income tax offset or small-business offset that reduces income tax, and ensure it matches your calculations.
Check Payments, Refunds and Bank Details
Confirm that PAYG instalments, withheld tax and any prior tax payable have been accurately credited. If a refund is on its way, double-check the bank account details recorded with the ATO; incorrect details delay payment even when the assessment shows “refund”.
Common Issues and How to Fix Them
Even with good bookkeeping, discrepancies can appear. Here is how to tackle the most frequent problems.
Timing Differences and Previous Tax Return Adjustments
If an invoice straddles two financial years or you corrected a prior-year figure, the amounts on your NOA may differ from your internal profit report. Keep a note of these adjustments so you can explain them later if needed.
Lodging an Amendment Request
Found an error after the NOA was issued? Lodge an amendment request through ATO online services or ask your registered tax agent to do it on your behalf. The earlier you amend, the lower the risk of penalties and interest.
When a Tax Agent Can Help
A registered tax agent brings deep knowledge of ATO systems and can liaise with the tax office on complex issues. They also receive the notice on your behalf if you authorise them, saving you time and ensuring any queries are handled promptly.
If You Receive a Tax Bill
A tax assessment that says you owe money can be unsettling, but it simply means the ATO’s figures show tax payable. Examine payment options in ATO online services, such as instalment plans, and schedule funds transfer before the due date to avoid additional interest.
Step-By-Step Reconciliation Checklist
Use this checklist after every assessment to stay on top of your tax duties.
Carefully review the assessment online
Open the NOA in your myGov account or practice management portal and read it line by line. Take note of any unfamiliar amounts.Gather supporting documentation
Pull the ledger, invoices, receipts and bank statements that back each figure. Store them together—digital copies are acceptable.Match income, deductions and offsets
Create a simple worksheet showing internal totals versus the notice figures. Highlight any variances for follow-up.Record the outcome in your tax records
Once everything matches, save the worksheet with your annual file so you (or your tax agent) can access it quickly next year.Monitor the next income year
Variances spotted this year often hint at bookkeeping tweaks you can make straight away—such as coding rules or monthly reconciliation routines.
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Frequently Asked Questions
Here are clear, practical answers to the most common questions about NOA:
What is a Notice of Assessment?
It is the ATO document confirming how much income tax you must pay or will be refunded for a specific financial year.
How much tax will I pay?
Your NOA outlines the exact income tax calculated on your taxable income after offsets and credits. The figure appears under “Tax payable”.
Where do I find my Notice of Assessment?
Log in to your myGov account, open ATO online services and select “Manage tax returns”. The notice appears for each income year once processing is complete.
Can I still access a previous tax return or notice?
Yes. Previous assessments remain in the same myGov portal, and your registered tax agent can also retrieve them.
What happens if my bank account details are wrong?
Update them in ATO online services or call the tax office. Correct details ensure any refund is paid via direct deposit without delay.
How do I correct an error?
Submit an amendment request online or ask your tax agent to prepare one. You generally have two years from the issue date to amend, though some situations allow four years.
Do I need my Tax File Number (TFN)?
Your TFN appears on the NOA and is required whenever you contact the ATO, link your myGov account, or authorise a tax agent.
Is the middle-income tax offset still available?
The offset appears automatically on eligible assessments for the relevant income year. Check the offset line to confirm it was applied.
Conclusion
A Notice of Assessment may look like just another official letter, yet it is an important paper that sums up your entire tax situation for the year. By reviewing the notice carefully, reconciling every figure, and keeping clear tax records, you protect your business from surprises and ensure you are paying the correct amount of tax—no more, no less.
If you have any questions about your assessment, need help with an amendment, or want a professional to double-check your numbers, reach out to ACT Bookkeeping today. Our friendly registered tax agents will walk you through the process, give you peace of mind, and let you get back to running your business while we handle the taxes properly.
