Well written @Belli , explained perfectly, I found out first hand in 1982 that the ATO is black and white, very little grey.
When I thought I had given a terrific explanation why I couldn't at that point in time pay my tax bill and how it was due to tragic circumstances beyond my control, they were very understanding and said I could waive it as long as I liked, but it would incur interest at the standard rate. Lol
Thanks @sptrawler. I'm not a lawyer but in my early 40's it was an area in which I was involved. I checked before I posted and the requirements surrounding the write off/waiver of debts by Government departments hasn't changed.
It's awful for those who have received these payment notices, and I hope the issues are resolved in their favour, but we generally expect public servants to properly administer the legislation passed by Parliament. Sadly legislation can have some not-so-good sections in them. I'm not saying it's nice or it's done well but, basically, you cannot administer only the good parts and ignore the bad aspects of legislation.
I was wondering about Why now? with these tax notices. I've no inside knowledge but I hazard a guess with the Federal Government looking for dollars, it's possible the ATO, having a large tax deferred debt in it's books, got a nudge, either by an internal review or an external one (think Dept of Finance), to reduce it. Only a guess though.