Kim v Hasegawa and Ye International Pty Ltd

This matter concerned an application for unpaid wages and superannuation under the *Fair Work Act 2009* (Cth). The applicant, Kim, and the respondents, Hasegawa and Ye International Pty Ltd, had entered into a settlement agreement following mediation. The dispute arose from a disagreement regarding the amount of tax to be deducted and remitted to the Australian Taxation Office (ATO) from the settlement sum payable by the respondents to the applicant.

The court was required to determine whether the respondents had satisfied their obligations under the settlement agreement, specifically concerning the tax deductions made from the settlement amount. The applicant contended that the respondents had overpaid tax to the ATO by calculating the deduction as if the entire settlement sum was income received in a single week, rather than considering the applicant's overall tax position.

Judge Dowdy reasoned that the true position regarding the applicant's remaining tax obligations under the settlement agreement could only be established by examining the applicant's tax return. The court noted that the settlement agreement stipulated a gross payment of $20,235, less applicable tax, with superannuation payable as directed by the applicant or to the ATO. The respondents had paid $11,187 to the applicant and $9,048 to the ATO, which the applicant argued was an incorrect calculation of tax.

The court ordered that the applicant was to advise the respondents in writing of the amount by which she contended she had been underpaid under the settlement agreement and how that underpayment was calculated. This was to be done by 4:00 pm on 30 August 2018, to allow for further determination of the matter.