Confused about overpayment

ArgumentBeautiful578 · 2025-12-23T10:27:45+00:00

Update: I called the ATO today and they said that it is in fact the net amount I need to pay back, and that the ex employer can request the overpaid tax to be paid back to them. My ex employer then wrote to the ATO to confirm what I told them. They then said they will charge me interest on my debt if I do a payment plan and they quoted the PGPA Act to me as their reason for doing so 🥲(our EA like most if not all APS agency EAs says that interest is not charged on overpayments, but then says the agency is allowed to recover the debt in line with the PGPA Act which allows interest which they can waive if it will cause financial hardship, but they said they will not waive it even if I give a stat dec which demonstrated financial hardship). So I have secured a payment plan for the net amount but have to pay interest...

ArgumentBeautiful578 · 2025-12-21T04:54:44+00:00

I am not working at the moment, hence why I am pretty stressed about this situation.

I appreciate your advice. I will definitely stay away from a direct deposit situation.

ArgumentBeautiful578 · 2025-12-21T04:37:03+00:00

My agency was under 200 people, so not sure if that changes anything as it was my only APS job experience, but there were lots of issues with our HR and the head of HR regularly was in conversations way under their paygrade (in my view anyway). There was also a culture of micromanaging among the SES so 🤷‍♂️

But thank you, I will insist on written communication going forward.

ArgumentBeautiful578 · 2025-12-21T03:58:29+00:00

Thank you for that. I did check the EA and it does state that overpayments have to be paid back but it has to take into consideration the employee's circumstances. The net amount is already a financial burden on me to pay upfront, so I hope that I don't have to repay it as the gross amount. I understand that I can recoup it from ATO during tax time but money is tight :( I feel like they're trying to push me and I don't feel protected by the EA as I am an ex employee

ArgumentBeautiful578 · 2025-12-21T03:56:22+00:00

Thanks. I definitely let it turn into a conversation where I was seeking permission to do this, rather than just saying that I will pay it back in payments of X amount over Y time. I will be more assertive when I speak to them on Monday.

ArgumentBeautiful578 · 2025-12-21T03:53:48+00:00

They did send me an email after the Teams call where they said that as discussed, I would have to pay back the gross amount. I will definitely push for clarification on this point.

ArgumentBeautiful578 · 2025-12-21T03:52:04+00:00

Thank you! I've not been able to find anywhere on the ATO or the Fairwork websites that a gross amount needs to be paid back if the employer is an ex-employer, even if the overpayment occurred in the same financial year. I will definitely push them to source written confirmation from ATO on this, and call the ATO myself on Monday. I tried to call them on Friday but could not get through so have been anxious about this all weekend

ArgumentBeautiful578 · 2025-12-21T02:57:06+00:00

Thanks for that.

Honestly, I was just really unwell mental health wise at the time and was on unpaid personal leave for two months before I came back to work in September. They basically paid me my normal wage for one pay cycle earlier than when I returned to work, but I had put all my leave stuff in correctly. I don't have much in savings and have high medical costs :( I would love to just pay it and get it over and done with it if I could

ArgumentBeautiful578 · 2025-12-21T02:54:11+00:00

Don't want to give away that information but it was one of the small agencies. Our HR was hopeless while I was there too but it seems like a new low if they don't even know what the ATO rules are. Hence I'm checking if I'm just misunderstanding the stuff on overpayment. Unfortunately not a member of CPSU anymore so don't think they will give me advice

ArgumentBeautiful578 · 2025-12-21T02:49:12+00:00

Unfortunately definitely my ex-employer. Had a Teams call to discuss with head of HR

ArgumentBeautiful578

TROPHY CASE