8.5 Refund of Tax

When a payee is placed on 48.25% tax or when they accidentally tick 'N' rather than 'Y' for the Tax Free Threshold, it is possible to refund the tax from the ATO.  This should not be encouraged, as the tax already sent now belongs to the ATO, and should not be redrawn.  The ATO should be the ones to make the decision whether tax should be refunded.  This decision is made when a tax return is lodged at the end of the financial year.  However, the Direct Payments Team has allowed one refund a year to payees who are in financial hardship.  State Offices will need to advise HRG of the amount you wish refunded.