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bm1(Initiate)Initiate
21 July 2021

Hi there,

I earned $71,328 ($17088 tax withheld) from working full time. I however accidentally also didn't realise that I did not claim tax free withheld when I first started working. My company offers salary sacrificing which I still don't know much about and don't know if this infor helps solve my issue. When I went to lodge my tax, it said that I owe $1.4k to ATO which I don't understand why ( I haven't put all work-related expenses yet ). I thought I would get my tax back as I did not claim taxf free withheld and instead paid more tax. Can somebody please help?

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3 replies
742 views
3 replies

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Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response22 July 2021

Hi @bm1,

If you have a HELP debt your employer does withhold extra tax credits throughout the financial year (as long as you have informed them of this). However, these tax credits are not applied to your account until you lodge your tax return. We will then determine if your income reaches the threshold and you have a compulsory repayment to make. If so, the amount will be withheld from the extra tax credits and applied to your HELP debt. If not, you would be refunded the amount, as long as you do not have any other Govt' debt.

I hope this helps :)

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JodieR_ATO(Community Support)Community Support
21 July 2021

Hi @bm1,

When you lodge your return, you have to select if you were an Australian resident for tax purposes. Once you do, this will advise us that you are entitled to the first $18200 tax free. We will also apply the low middle income tax offset (LMITO) and (LITO). Thereafter we will determine how much tax you should've paid. If you have paid too much tax, you will receive a refund. So long as you do not have any other Govt' debts.

Please use the links for further assistance.

All the best.

bm1(Initiate)Initiate
21 July 2021

Hi, Thanks for your prompt reply. I am an Australian Citizen for tax purposes.

When I went to lodge tax return and it said under other liabilities (show calculations), compulsory higher education loan repayment and (~$4.5k) but I thought I was paying a little bit through my income every time I get paid. Does this mean that I haven't been making HECS repayment every time I get paid?

Thanks.

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response22 July 2021

Hi @bm1,

If you have a HELP debt your employer does withhold extra tax credits throughout the financial year (as long as you have informed them of this). However, these tax credits are not applied to your account until you lodge your tax return. We will then determine if your income reaches the threshold and you have a compulsory repayment to make. If so, the amount will be withheld from the extra tax credits and applied to your HELP debt. If not, you would be refunded the amount, as long as you do not have any other Govt' debt.

I hope this helps :)

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