Search finance answers:
Generic filters

What is the ATO and what do they do?

In this article:

The ATO is Australia’s Tax Office.

Similar to the USA’s IRS and the UK’s Revenue & Customs, the ATO is responsible for making sure individuals, businesses, self-managed super funds and other entities lodge their taxes each year.

Each person and business is responsible for lodging their own tax return, usually for the year to June 30th.

Income Tax Explained

ATO Reviews and Audits

If the ATO thinks you have been a little cheeky in your tax return they will conduct a review of your tax affairs. The review may result in an audit, which is often conducted over 18 months.

To detect issues, the ATO will use sophisticated compliance filtering processes, and an audit may involve the ATO visiting your place of business.

A good rule of thumb is to be open and honest with the ATO, and seek expert tax advice if you are being audited.

In addition to monitoring and collecting taxes, the ATO works with other parties like APRA and ASIC to maintain Australia’s highly regulated financial system.

The ATO website has loads of informative articles, video and other content which can help you prepare and pay your taxes.

Did you know Rask Education offers investing, budgeting, tax and finance courses? Here are the three most popular: Absolutely no credit card or payment information required -- all you need is an email address!
Owen Raszkiewicz

Owen Raszkiewicz

Owen is the Founder of Rask, Lead Investment Analyst for Rask Invest and head educator at Rask Education. Prior to founding Rask, Owen was an investment analyst at the highly regarded managed funds research business Zenith Investment Partners and a Writer/Analyst for The Motley Fool Australia. Owen’s formal qualifications include a Master of Applied Finance and Master of Financial Planning from Kaplan Professional, Bachelor of Technology (Information Systems) from Swinburne University of Technology, Advanced Diploma of Financial Services (Financial Planning) and Diploma of Mortgage Broking Management. He's also completed level 1 of the Chartered Financial Analyst (CFA) program.

Share this post:

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp