Private ruling: Assessable income
Date of advice: 28 October 2025
Published: 15 December 2025
Ruling period: Year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you able to amend your tax return to reduce your salary under Section 59-30 of the Income Tax Assessment Act 1997 ? | A1: Yes. Based on the information provided to the Commissioner you can amend your tax return to reduce your salary in the income year the overpayment occurred. Subsection 59-30(1) of the ITAA 1997 states that: An amount you receive is not assessable income, and is not exempt income, for an income year if: 1. you must repay it; and 2. you repay it in a later income year; and 3. you cannot deduct the repayment for any income year. The amount you were required to repay is not assessable income to you in the relevant income year. You are able to amend your tax return to reduce your salary and wages.

Relevant facts and circumstances: You were employed by Employer Z during the relevant income years. During the year, you were employed on the basis that you were paid an amount per annum plus superannuation. You were expected to achieve a measurable output on behalf of the employer in the course of your employment during the year. Output by each staff member of the employer is tracked. You missed the output target in the relevant year. Employer Z issued an invoice to you to make up the shortfall. The invoice was raised in the relevant financial year. During the following year, you paid the invoice in multiple payments.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 59-30