I had a Novated Lease through my employer. Payments for this lease were part salary sacrifice (Pre-tax) and part post tax pay deductions.
When the lease was completed there were excess funds which were refunded via my payroll. Payroll added the entire amount to my taxable income.
$6511.75 was the excess. I backtracked my payslips and added up post and pre tax payments to the value of the excess. Payments of $2440.26 were from my post tax amount and $4071.49 were salary sacrificed payments.
Should the entire account excess funds have been added to my taxable income or just the amount that was made from salary sacrifice deductions.
Payroll tell me they followed the lease company's instruction, the lease company tell me it is up to payroll to sort it out.
I'm guessing that irrespective of what proportions are pre and post tax to the account, excess refunded at the end is classed pre tax as a whole? (this would be the blanket short answer)
I have not been able to find a yes or no answer yet.
Surely I don't have to pay tax twice on the post tax portion.
Or is there a many layered explanation that I have benefited in some other way by reducing my taxable income over the life of the lease (this would be the blanket long winded difficult to understand answer)
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