Hello. For about a year and a half I was being underpaid at my job. I caught this last financial year and I was paid a lump sum for the missed wages. I was taxed a large amount on that payment because they paid me the entire amount at once plus my usual fortnightly wages.
The amount I was underpaid was about 2.5K.
Now I have attempted to lodge my tax return and I was directed to put the information on this payment into the LSPIA section which I did. I was anticpating a $600-$700 return this year but when I did the calculation it says I owe the ATO $254.
I don't understand why I owe money to the ATO when I have already paid the tax on the lump sum payment and it wasn't even my error in the first place.
I didn't know I was being underpaid, I was paying taxes for what I was receiving and this lump payment did not push me into a higher tax bracket nor does my correct pay.
Is this something I can rectify or am I just up the creek without a paddle?
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