Using consolidated revenue to repay funds 277-04260030

Example

Reason

Legal obligation to use consolidated revenue to refund exists

• The ATO requests the return of an intercepted tax refund as per the Services Australia/ATO services schedule
• When a payer provided fraudulently obtained funds and the relevant financial institution needs the money returned under a contract between the agency and the financial institution
• Section 72A notice sent where the agency is aware that the third party did not hold funds, yet the third party complied with the notice

May be possible to use consolidated revenue to pay or refund a party

• An employer remits payments to the agency that are attributed to the wrong payer and due to agency error are subsequently disbursed to the wrong payee
• An employer continues to remit EW payments to the agency even though the employee ceased employment several months prior

Consolidated revenue to refund should not be done

• The creation of a consolidated revenue debt to facilitate a payee disbursement recovery arrangement
• A payer inadvertently uses an incorrect payment reference number and payments are disbursed to an unrelated payee
• A payer requests the refund of an overpaid amount prior to collecting the amount from the payee