Parental Leave Pay overpayments

If you receive a Parental Leave Pay overpayment, you'll have to repay the money.

Overpayment

You may be overpaid Parental Leave Pay because your circumstances changed. This could happen, for example, if you returned to work before the end of your Paid Parental Leave period and were no longer entitled to receive the payments but we weren’t notified.

When we become aware that you have been overpaid, we’ll send you an Account Payable notice advising you of the amount of overpayment. You’ll have to repay that amount using one of the repayment options included in the notice. You may want to contact us to discuss repayment options or your review and appeal rights.

You’ll have to repay the gross amount. Your repayment amount will include the net amount of Parental Leave Pay you received from your employer and the Pay As You Go (PAYG) withholdings paid by your employer to the Australian Taxation Office (ATO) for Parental Leave Pay.

Getting a refund of PAYG withholdings when an overpayment occurs

From your employer or from us

If we were paying you directly and you request a refund of the PAYG withholding amount in the same financial year in which the overpayment occurred, we can recover the PAYG withholding amount from the ATO and reduce your gross debt by this amount.

If you were getting the payment from your employer, we’ll recover the gross amount of the overpayment from you. You can then request a refund of the PAYG withholding amount from your employer if it’s still the same financial year in which the overpayment occurred. Your employer will have to refund the PAYG withholding amount to you.

From the ATO

If the overpayment occurred in a previous financial year, you'll need to recover the PAYG withholding amount from the ATO yourself, regardless of whether you received the overpayment from us or your employer.

If your income assessment has not been completed by the ATO, you can receive an offset of the overpaid PAYG withholding amount in the calculation of your tax return.

If the ATO has completed your income assessment, you should apply in writing to the ATO for an amended income assessment. You should provide the ATO with a copy of the Account Payable notice you received from us.

If an overpayment spans 2 financial years, each of the 2 processes described above will apply to the portion of the debt that occurred in the relevant financial year.

Payment summaries

Parental Leave Pay is a taxable payment and you’ll receive a payment summary either from us or from your employer, depending on who provided Parental Leave Pay.

If you received an overpayment and we provided Parental Leave Pay, we’ll issue an amended payment summary to you.

If you received an overpayment and your employer was providing Parental Leave Pay, they’ll need to assess and amend your payment summary. If your employer hasn’t issued you with a payment summary for the financial year the overpayment occurred, your employer is required to adjust their payroll record so that the overpaid amount is not reported as income on your payment summary.

If your employer has issued you with a payment summary for the financial year the overpayment occurred, your employer is required, within 28 days of becoming aware of the overpayment, to give you:

  • an amended payment summary, or
  • a letter containing relevant information about the overpayment for you to provide to the ATO

The arrangements for the amendment of payment summaries are similar to those that apply to overpaid salary or wages.

Read more about PAYG on the ATO website or speak with your employer.

Page last updated: 20 May 2016

This information was printed Sunday 4 December 2016 from humanservices.gov.au/customer/enablers/parental-leave-pay-overpayments It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.