Employer deducted extra pay but reported it to ATO — what should I do?

Hi all, hoping someone can help or has been through something similar.

Last year I worked briefly for a large public sector body during their transition from weekly to biweekly pay. As part of that change, they gave employees an extra week’s pay upfront, with the condition that it would need to be repaid if the employee left before completing 3 years.

I left after a few weeks, and they deducted that extra week’s pay from my final payslip — all good, I expected that.

Fast forward to now: I’m doing my tax return and noticed that the pre-filled income on my ATO form shows (let’s say) $10,000 instead of the $8,000 I actually received. It looks like they reported the full amount to ATO, including the extra week’s pay that I had to repay.

I called the employer, but they weren’t much help and just told me to contact ATO. I’ve tried, but haven’t been able to get through — lines are constantly busy.

Has anyone dealt with something like this before? Should I manually adjust the income on my tax return? Or wait until I can speak to someone at ATO? I don’t want to get penalised for underreporting, but I also don’t want to pay tax on money I never actually received.

Any advice appreciated!

Posted Sep 29, 2025, 11:24 AM UTC

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