This chapter does not cover every tax problem. It is mainly concerned with common questions on income tax for wage and salary earners and those on modest incomes from other sources. It also deals briefly with other types of tax.

Because much basic information about the tax system is included in TaxPack, published each June by the Australian Taxation Office (ATO), the focus of this chapter is on disputes and legal difficulties.

A very useful resource is the ATO itself. It has a comprehensive website (www.ato.gov.au), and the office is well set up to handle personal enquiries. People are often reluctant to contact the ATO for fear of attracting undue attention, but a simple enquiry is unlikely to attract an audit. Remember, however, that the ATO will be giving you its version of what the law means.

Freedom of information and confidentiality

The Commissioner of Taxation is subject to the federal Freedom of Information Act 1983 (see Freedom of information). This means that people can see their own files, within the limits laid down in that Act. Generally, s.16 of the 1936 Act binds the Commissioner and other tax officers to secrecy with regard to taxpayers’ affairs.

Taxation rulings

References are made in this topic to rulings. These are statements by the Commissioner of Taxation on how the law will be applied in certain areas.

Public rulings made since 1 July 1992 (the TR and TD series) are binding on the Commissioner, though they must give way to adverse court decisions.

Rulings made before that date (the IT and MT series) are not strictly binding on the Commissioner.

In both cases, rulings: