I was overpaid, how does my tax obligation change?

Question

 · Accepted Answer

WendyATO · Answer

When an overpayment has been made to you as a payee. There has been an agreement between you and the payer (employer) to repay the overpaid amount. Like you have in your case. Then your employer needs to correct the mistake and amend your PAYG withholding payment summary to exclude the overpaid amount. You're not required to report this amount in your tax return. Check out our page about repayment of overpaid amounts (https://www.ato.gov.au/Business/PAYG-withholding/In-detail/Repayment-of-overpaid-amounts/) this will explain the steps the employer needs to take.

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