Small business independent review

What is an independent review?

When your audit case officer sends you (or your representative) our final audit position, it may include a written offer to have an independent review. If you disagree with our audit position, you can ask to take up this offer.

In an independent review, a tax officer with no previous involvement in your matter will review the supporting documents, facts and technical merits of your position and the audit position. This is done before we issue any assessment or amended assessment. You can still use other dispute resolution options after an independent review. For example, you can still lodge an objection if you disagree with the outcome of the audit after the independent review is complete.

To find out how an independent review is conducted, see The independent review process.

How to request an independent review

If you're eligible for an independent review, you will receive an offer from us. Request a review by emailing us within 14 days of the date of offer.

In your request you'll need to specify each area of your disagreement with our audit position.

We’ll consider the grounds for your disagreement and confirm that your case qualifies for an independent review. If we decline your request, we’ll tell you the reasons why and your audit will be finalised according to our audit position.

Your audit case officer may ask you to complete a consent form to extend the amendment period. This will allow the reviewer to complete the review before the period of review for the relevant assessment ends.

Eligibility for an independent review

You’ll be eligible for a small business independent review if you:

• are a small business with a turnover less than $10 million
• have a dispute related to income tax, GST, excise, luxury car tax, wine equalisation tax or fuel tax credits
• are not excluded for other reasons – see Situations where a review is not available.

Expansion pilot starting 1 July 2024

From 1 July 2024, there is a trial expansion of the small business independent review to include small businesses with a turnover less than $50 million.

Situations where a review is not available

Disputes related to super, fringe benefits tax, fraud and evasion findings and interest are not eligible for independent review. In addition, you are not eligible for an independent review if:

• when requested, you don’t complete a consent form to extend the amendment period to allow the review to take place
• the relevant notice of assessment or amended assessment has already issued
• an objection or related party objection has been lodged about the matter on hand
• you or a related party have already had an independent review on the matter
• we have serious concerns that you don’t intend to comply with the payment of any potential assessments following the outcome of the independent review
• your business is part of a larger group of related entities with a total annual turnover of more than $10 million (or more than $50 million from 1 July 2024 as part of the expansion pilot)
• your business is being audited for tax evasion (including offshore tax evasion), tax fraud, illegal phoenix activity or other tax crime
• your business is subject to a status-of-worker audit initiated from an employee notification, or there is a potential sham contract or contrived arrangement
• your business is subject to a super guarantee audit.

You also won’t be eligible if you disengaged with us during the audit process. We consider you may have disengaged if you didn’t:

• respond to attempts of contact from the audit team – for example, you failed to return phone calls or reply to correspondence
• attend meetings with the audit team
• provide requested information or documents, causing us to use our formal information gathering powers
• communicate your position during the audit process
• respond to the audit team’s interim position paper.

Your case will not be eligible if:

• it has or will be considered by the General Anti-Avoidance Rules Panel, regardless of the extent of consideration of the substantive provisions
• it relates to valuation or transfer pricing issues, with the exception of cases where recommendations can be made as to which party has the better view without considering the underlying economic analysis
• recommendations can only be made by deciding between matters of conflicting expert opinion
• we consider it may be appropriate to clarify through the courts.

When we may not offer a review

We have the discretion to not offer an independent review. For example, we may not offer an independent review if:

• we have announced that tackling the main issues in dispute is among our highest priorities (which might be the case if a Taxpayer Alert is clearly relevant)
• the case has significant systemic impacts
• your case has already been escalated for in-depth scrutiny and review by independent senior officers.