• Repayment of overpaid amounts

    If you overpay a payee you must decide if the payee is required to repay the overpaid amount.

    If you decide that the payee:

    • is not obliged to repay the overpaid amount – you do not need to do anything (unless you are a state or Australian government departments or agencies, as employees may need to repay the overpaid amount)
    • has to repay the overpaid amount – the action you need to take depends on whether the overpayment is identified in the same financial year or a later financial year.

    If the employee is obliged to repay the overpaid amount, fringe benefits tax (FBT) may apply if you:

    • allow the employee time to repay the overpaid amount
    • waive the employee's obligation to repay the overpaid amount.

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      Last modified: 24 Oct 2017QC 16338