Australia: ATO guidance on treatment of JobKeeper overpayments (COVID-19)

Australia: Treatment of JobKeeper overpayments

The Australian Taxation Office (ATO) released information as guidance for employers regarding overpayments of JobKeeper payments when there has been an incorrect self-assessment. The ATO stated that such overpayments need to be identified, but in some instances, may not need to be repaid.

1000

Related content

The JobKeeper program was established to provide employment-related relief in response to the coronavirus (COVID-19) pandemic.

According to the ATO guidance, if an overpayment is identified, one of the following will occur:

  • The ATO will decide if the overpayment does not have to be repaid (typically in instances when the employer made an honest mistake).
  • The ATO will decide that the overpayment needs to be repaid by the employer.
  • The ATO will decide that another entity that directly or indirectly benefited from the overpayment is also liable to repay the overpayment. When another entity is also liable, the ATO may pursue collection of:
    • The entire repayment from the employer
    • The entire repayment from the other entity, or
    • Payments from the employer and the other entity until the overpayment is repaid in full

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal