A private ruling is binding on the Commissioner in your favour on the facts you describe. That makes it the single most useful certainty tool available on a genuinely uncertain position. It also makes the application itself decisive: the ruling is only as good as the scheme description and an unfavourable ruling is very hard to unwind.
Rulings can be sought on GST as well as income tax and capital gains tax.
The judgment call is often not how to draft the application. It is whether to lodge one at all. Some positions are better documented and defended. Others are better resolved through early engagement.
Where we act
What we do
- Private binding ruling applications: scheme description, contentions and supporting authority
- Advising on whether to apply and on the risks of an adverse ruling
- Objecting against an unfavourable private ruling
- Early engagement and pre-lodgment discussions on significant transactions
- Applications for the Commissioner to exercise a discretion, including Division 7A section 109RB relief
- Requests for extensions of time and administrative relief
- Reviewing existing rulings for whether the arrangement actually implemented matches the scheme ruled on
How we work
Our approach
The facts are the product. Most of the work in a ruling application is in the scheme description: complete enough to bind, precise enough not to describe something you are not going to do.
Know the downside before you ask. We give a clear view on the likely outcome before lodging, so the decision to apply is a commercial decision made with open eyes.
Quoted before we start. You get a fee estimate before anything is lodged, usually a range, with a fixed fee where the scope allows.
Common questions
How long does a private ruling take?
The ATO’s stated aim is to deal with most applications within 28 days of having all the information it needs. In our experience it usually takes longer, particularly on the more complex fact patterns we tend to act on. The clock restarts each time further information is requested, so timing ultimately depends on the facts. A complete application on lodgment is the main lever.
What happens if the ruling goes against us?
An unfavourable private ruling can be objected against and the objection decision can then be reviewed. But it is a materially worse starting position than not having asked. That is why the decision to apply should be made only after a considered view on the likely answer.
Have a matter you want a straight answer on?
Most engagements start with a short conversation about the issue and the exposure.