indexation applied on HELP

Question

BlakeATO · Accepted Answer

If the client ever completed a Request for Commonwealth support and HECS-HELP form for the uni, he's still getting HECS-HELP. If it isn't deferred on a loan, it reduces the fees payable upfront. In this case, he wouldn't be eligible to claim a deduction, since his fees are still government-subsidised. But if your client didn't complete the form, he won't be receiving this. This means he hasn't enrolled for HECS-HELP through the uni. The course fees aren't payable under HECS-HELP in that case. Provided he meets all other eligibility, he could claim a deduction for course fees paid. FEE-HELP is for education providers that aren't Commonwealth supported places. These places aren't eligible for HECS-HELP. In that case, the course fees aren't government-subsidised or reduced, so he could still claim a deduction. You can read about HECS-HELP (https://www.studyassist.gov.au/help-loans/hecs-help) and Commonwealth supported places (https://www.studyassist.gov.au/help-loans/commonwealth-supported-places-csps) on the StudyAssist website.

JasonT · Answer

- Is your client using FEE-HELP or HECS-HELP to fund his study? - Indexation (https://www.ato.gov.au/Individuals/Study-and-training-support-loans/View-your-loan-balance-online/#Indexation) is not tax-deductible.

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