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Apply for a private ruling from the ATO

We will frame the question so the answer you get back is one you can actually rely on.

A private ruling is the only way to make the Commissioner’s view binding before you act. You set out the facts and the question, the ATO applies the law to those facts, and the answer holds. The catch sits in the first half of that sentence. A ruling binds only in relation to the scheme and the facts you described. A question framed loosely produces an answer that protects you from very little. The Taxation Administration Act 1953 (Cth) (the Administration Act) sets out how the system works.

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An answer that binds the Commissioner

Acting in accordance with a ruling protects you on the primary tax, the penalties and the interest.

Drafted to cover what you will actually do

A ruling binds only on the arrangement described, so completeness in the description is the whole job.

Told when not to ask

Some questions are better left unasked, and we will say so before an adverse view goes on the record.

What is a private ruling, and what does it actually protect you from?

A private ruling is a written statement of how the Commissioner considers the law applies to a specific arrangement described by the taxpayer. It binds the Commissioner in relation to that arrangement. A taxpayer who acts in accordance with it is protected on the primary tax, the penalties and the interest. That protection is tied to the facts as described. An arrangement that differs from the one ruled on is not covered, which is why the description matters as much as the question.

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Is a private ruling binding on the ATO?

Yes, in relation to the arrangement described in the application. If you act in accordance with it, the Commissioner cannot assess you on a different basis for that arrangement. The protection covers the primary tax as well as penalties and interest.

What if the ruling goes against us?

You are not obliged to proceed, and an adverse ruling can be objected to in the same way as an assessment. It does however become a recorded ATO view of your arrangement. That is why the decision to apply is worth taking deliberately rather than by default.

How is a ruling different from calling the ATO?

An informal view is not binding. It can be useful for understanding how the ATO thinks about something, and it does not create a record in the way an application does. If you need protection you can rely on when you lodge, only a ruling provides it.

How long does a private ruling take?

It varies with the complexity of the arrangement and the quality of the application. A complete application with the facts set out and the legal argument made moves faster, because the officer has less to come back for. Incomplete applications generate requests that extend the timeframe.

Test whether a ruling is the right tool first

Tell us what you are proposing and what is uncertain about it. We will tell you whether a ruling is worth applying for, and what it would cover.

The answer you get depends on the question you asked

You have an arrangement that is commercially sound and legally uncertain. You do not want to find out you were wrong two years after committing. A private ruling can remove that uncertainty. It can also produce an adverse answer that is now on the record. Or an answer so narrow that it does not cover what you plan to do. Which of those you get depends almost entirely on how the application is drafted.

We will advise whether a private ruling is the right tool for your situation.
We will draft the description of the arrangement so the ruling binds on what you will do.
We will frame the questions so the answers cover the treatment you actually need confirmed.
We will put the legal argument and authorities supporting your position in the application.
We will handle the ATO's questions and requests for further information through the process.

The transaction is ready and the tax treatment is genuinely unclear

You have a restructure, a transaction or an arrangement that you want to proceed with. Your advisers agree on the commercial logic and disagree, or hedge, on the tax treatment. The amount at stake is large enough that proceeding on an assumption is uncomfortable. You want someone to tell you what the ATO will actually do, in a form that holds them to it.

What's included in your private ruling application

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Advice on whether to apply, and on the risk of an adverse answer.
A complete and precise description of the proposed arrangement.
Questions framed to cover the treatment you need confirmed.
Written legal submissions with supporting authorities.
Management of ATO queries during the process.
Advice on your options once the ruling issues.

Why a ruling application is a drafting job

A private ruling application looks like a form. It is closer to a pleading.

The Commissioner rules on the arrangement as you have described it, which means the description does the work. Leave out a fact that turns out to be material and the ruling does not bind in relation to what you actually did. Describe the arrangement more broadly than necessary and you invite a narrower answer. Ask a question that assumes the point in issue and you may get an answer that does not address it.

There is also a decision to make before any of that. Some questions are better not asked. An adverse ruling binds the Commissioner, but it is also a recorded view of your arrangement. Proceeding afterwards can be harder than if the question had never been put. Working out whether to apply is part of the advice, not a preliminary to it.

From an uncertainty you are carrying to an answer that binds

We start with whether a ruling is the right instrument at all. Sometimes the uncertainty is small enough to document and accept. Sometimes the better route is an informal discussion with the ATO, which does not bind but also does not create a record.

Where a ruling is worth seeking, the work is in the drafting. We set out the arrangement completely and precisely, because completeness is what makes the ruling binding and precision is what keeps it useful. We frame the questions so the answers cover what you actually intend to do. We put the legal argument supporting your position in the application, with authorities, rather than leaving the analysis to the officer. Then we deal with the questions that come back during the process.

How we take a ruling application through

Decide whether to ask, then ask it properly.

Decide whether to ask

We weigh the value of certainty against the risk of an adverse answer becoming a recorded view.

Draft the arrangement

We describe the arrangement completely and precisely, because that description is what the ruling binds on.

Argue and follow through

We submit the supporting legal argument, and manage the ATO's questions until the ruling issues.

A ruling drafted to cover what you actually plan to do

Being unable to proceed is its own cost. A decision that is commercially ready and legally unresolved sits there consuming attention, and every adviser hedging makes it worse.

One of our lawyers is a Chartered Tax Advisor with The Tax Institute and has held that credential for 25 years. We are also recognised in Doyle’s Guide for tax law. We prepare private ruling applications and deal with the ATO through the process. We also act for taxpayers in objections and disputes, and that second part informs the first. Knowing how a position is tested later is what tells you how to describe it now. Where a ruling is the wrong tool, we will tell you before you apply.

Our great lawyer guarantee

Six principles we hold to, whatever you bring us and however long it takes.

Take the time

We listen carefully to understand what you want to achieve, then step you through the advice and the documents.

Share our knowledge

We pass on as much as we can, so you can make your own informed decisions.

Stick to our knitting

We only do what we are good at, so you never pay for our learning.

Work as one team

Someone is always available to answer your question or point you the right way.

Fair pricing

A fixed or capped quote for advice and documents, so you do not carry the price risk.

It is your show

We are in it for a front row seat to witness your success, not for our egos.

Get an answer you can rely on

Tell us what you are proposing and where the uncertainty sits. We will advise whether a ruling is the right step, and draft the application so the answer covers what you intend.

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