Quick question couldn't really find the answer on ATO/google
If i get an late payment offer (of annual leave) in a job i finished in April and got the payment this month, can i just lodge it this year's tax return or do i need to amend my previous 2018-19 tax return to include this- it's just a few thousand
thanks
thats literally the opposite of what happens
I considered it as a wage, not lump sum payment.
The same thing happens with wages. Any payment is assessed based on when it's paid, not when it's earned.
Even wages are taxed on when theyre paid not earnt - eg. if you work the 2 weeks before EOFY and get it paid the first day of the next financial year, its taxed in the next financial year
@garetz: It's one of the more sensible things the ATO do. It's black and white and simple to manage/report on. If you get paid this FY, you get taxed this FY
According to the ATO, it's based on the date you received the payment, and not the period of time you earned it.
https://www.ato.gov.au/Individuals/Income-and-deductions/Inc…
Lump sum payments
There are two common types of lump sum payments:When you leave a job, you may receive a lump sum payment for unused annual, long service leave or special leave you may have been entitled to had you not left your job.
The second is a lump sum payment in arrears for money owed to you from an earlier income year.Both of these lump sum payments are assessable in the year you receive them and need to be included in the tax return for that year. You do not need to amend prior year tax returns as lump sum payments generally have a tax offset applied to them which prevents too much tax being paid in the year the payment is received.
cool thanks for that
As geech said above I believe.
It's similar to say NAB dividends. Ex date is in May, pay date in July. Tax is in next years return. That's my opinion anyway.
ATO helpline should be able to answer that one pretty quick. My guess would be it just goes on this year's statement.