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Some income received 2019/20 relates to income that was owed to me from 2018/19. How to report?

Newbie

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Replies 3

Hi, I want to report income that relates to 18/19 but wasnt received until 19/20. The group certificate includes it in 19/20, which disadvantages me tax wise if I simply report it as income for 19/20. How can I correct this so that the income is for FY18/19, or do I have to report it for FY19/20 because that is when I received the money. It seems very unfair, not a true reflection of circumstances and will cost me dearly as a result Smiley Sad Please help me tax gurus, thanks !

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Devotee

Replies 2

Generally wages are taxed when received.

 

One exception is where you receive a lump sum of back pay, where you were say underpaid for a period of time and you received it all in one go. If you were paid (for example) June's commissions in July however, this is just normal wages, taxable in July

3 REPLIES 3

Most helpful response

Devotee

Replies 2

Generally wages are taxed when received.

 

One exception is where you receive a lump sum of back pay, where you were say underpaid for a period of time and you received it all in one go. If you were paid (for example) June's commissions in July however, this is just normal wages, taxable in July

Newbie

Replies 1

Thankyou, yes it was 2 lump sum coorections so I would think that qualifies under the exemption you speak of. Do I do an amendment or explain to them any advise is greatly appreciated !

ATO Community Support

Replies 0

Hi @Nige

 

If its lump sum payment E you need to report it in the corresponding section for the financial year of the payment summary its on.

 

Thanks, Ari