I was overpaid during the 2009/10 financial year. What are the income tax implications if I did not formally acknowledged the overpayment by 30 June 2010?
If you did not formally acknowledge the overpayment by 30 June 2010 Queensland Health is required to recoup any overpayments owing after that time on a gross basis. The gross amount is the net overpayment plus the tax paid on that income which was deducted from your pay. Your payment summary covering the period 8 March to 30 June 2010 will include the overpayment amount in the total income and tax figures. Once you formally acknowledge to Queensland Health that an overpayment has occurred, Queensland Health can issue you with an amended payment summary for lodgement with the Australian Taxation Office (ATO). The amended payment summary will exclude the overpayment amount and provide a new gross income figure on which you will be taxed. This will allow a tax refund* to be issued by the ATO for the tax on the overpayment. This ensures you will have the tax refund to allow you to repay Queensland Health the gross overpayment amount. *In issuing a tax refund the Australian Taxation Office
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