ATO letters explained
Got a letter, SMS or myGov message from the ATO? Here's what it means
Most ATO contact about overdue lodgements is routine, automatically generated, and fixable. It is the ATO asking for something that has not arrived yet, not a decision about you.
Find your letter below and you will get a plain-English explanation of what it is, why it was sent, what happens if it is left alone, and the order to deal with it in.
Is it a scam?
- The ATO never asks for payment by gift card or cryptocurrency.
- The ATO does not ask you to pay through a link in an SMS.
- Check messages in myGov, not through the link. If it is genuine, it will be there.
Find your letter or notice
Income Tax 551 'Overdue'
The 551 account is your individual income tax account. Overdue means unlodged returns or an unpaid balance.
What it meansActivity Statement 001 'Overdue'
The 001 account covers BAS, PAYG instalments and PAYG withholding. A nil BAS still has to be lodged.
What it means'Your tax return is overdue' SMS
Genuine ATO reminders exist, but they never ask you to log in or pay through a link.
What it meansFinal notice to lodge
The last step before a penalty or a default assessment. Lodging beforehand is the cleanest outcome.
What it meansFailure to lodge penalty notice
How the FTL penalty accrues, when individuals are not penalised, and how remission works.
What it meansGeneral interest charge (GIC)
Daily compounding interest on unpaid tax debt. A payment plan does not stop it accruing.
What it meansDefault assessment notice
The ATO assessed you without your return. It usually overstates tax, and review windows are limited.
What it meansGarnishee notice
A third party is directed to pay the ATO from money they hold or owe you. Engagement can get it varied.
What it meansDebt referred to a collection agency
External agencies collect on the ATO's behalf. You can still deal with the ATO directly.
What it meansFirmer action warning letter
The ATO's warning before stronger recovery. Engaging is what stops escalation.
What it meansNew message from the ATO in myGov
The five messages people see most often, and which ones need action.
What it meansStatement of account
Transactions, interest and penalties on one account. Why the balance moves daily.
What it meansWhatever the letter says, the sequence is the same: lodge what is outstanding first, then deal with penalties and debt once the real numbers exist. See overdue individual tax returns for late salary and wage returns, overdue BAS and GST for missing activity statements, and ATO tax debt and payment plans once a balance needs an arrangement.
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