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SFSS Overpayment

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Newbie

Views 524

Replies 3

Dear All,

Payroll at work continued deducting my SFSS payments after my loan was repaid until I submitted a form to cease this deduction from my fortnightly salary payment.

 

On my recent tax return, it doesn't show as having been overpaid and/or returned as part of my refund.

 

Payroll are saying it's nothign to do with them as they send direct to the ATO. Am i meant to fill in another form for it to be returned?

 

Thankis in advance, Jane

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Most helpful response

Taxicorn

Replies 2

@Jane_L 

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year. Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt. Any surplus or shortfall will then be credit/debited to you.

You may have not paid enough tax and the surplus was used to repay that.

 

Without knowing your taxable income and tax paid for the year, no one can answer your question.

 

3 REPLIES 3
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Most helpful response

Taxicorn

Replies 2

@Jane_L 

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year. Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt. Any surplus or shortfall will then be credit/debited to you.

You may have not paid enough tax and the surplus was used to repay that.

 

Without knowing your taxable income and tax paid for the year, no one can answer your question.

 

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Newbie

Replies 1

Thanks @macfanboy  Smiley Very Happy

 

I received a refund but it was not shown as a separate line and from my own calculations wasn't included in the refund but I might take the plunge and wait on the phone to talk to someone and confirm!

Cheers, Jane

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ATO Certified Response

Community Support

Replies 0

Hello @Jane_L,

 

I hope you were able to talk to us over the phone.

 

@macfanboy has provided some great information.

 

Your employer will withhold an additional amount of tax from your wage in anticipation of a compulsory repayment. These amounts are remitted to the ATO as part of the employer's PAYG tax withholding obligations.

 

The additional tax withheld will not be applied to their loan account until you:

  • have lodged your tax return, and
  • a compulsory repayment has been calculated based on your repayment income.

 

With your particular enquiry we will require you to contact us directly as we will need access to your records to ensure we can give you the best advice. If you haven’t already contacted us of course.

 

Luke S