The ATO has released guidelines, highlighting that if businesses – including salons – have received overpayment, repayment will likely be demanded.

There will be penalties applied “if there is evidence of deliberate actions to get JobKeeper payments that an entity would not have otherwise been entitled to,” the ATO said in a statement. However, if the overpayment was a result of a mistake, then administrative penalties are not likely to be applied.

IN a statement, the ATO explained that if a business is identified as having been overpaid, it will receive a letter from the ATO to explain why it thinks there has been an overpayment, the amount that is outstanding, and the the various payment plans to return the funds.

While businesses will be given the opportunity to appeal the decision, the ATO has not outlined what the process will be. That said, support will be offered to salon owners that are unable to make the repayment immediately. 

“If you can’t pay on time, we can help you,” the statement says. “If you’re trying to do the right thing, we’re committed to understanding your situation and helping you if possible.”

From 28 September 2020, general interest charge will automatically apply to outstanding amounts in your critical response account. General interest charge applied before this date will be remitted. These amounts will appear as debit and credit transactions on the account.

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