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Alex1232(Newbie)Newbie
19 July 2022

Hecs has been paid fully from the salary. But I see it has also deducted from the tax return.. wants to know what has happened here.

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291 views
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EdenATO(Community Support)Community Support
21 July 2022

Hello there @Alex1232

 

When you tell your employer you have a student loan they withhold amounts from your payments.

 

These amounts are not paid into the loan account until you lodge your income tax return. This is because we don't know if you need to make a compulsory repayment until we can see what you earned for the full year.

 

Because you earned more than $47,014 for the year we have applied these amounts to your student loan. If you had earned less than this you would have gotten these amounts back as a refund.

 

If your loan is now paid in full you should tell your employer. This means they can stop withholding those extra amounts moving forward.


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Most helpful reply

EdenATO(Community Support)Community Support
21 July 2022

Hello there @Alex1232

 

When you tell your employer you have a student loan they withhold amounts from your payments.

 

These amounts are not paid into the loan account until you lodge your income tax return. This is because we don't know if you need to make a compulsory repayment until we can see what you earned for the full year.

 

Because you earned more than $47,014 for the year we have applied these amounts to your student loan. If you had earned less than this you would have gotten these amounts back as a refund.

 

If your loan is now paid in full you should tell your employer. This means they can stop withholding those extra amounts moving forward.


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hecs is deducted from employee has paid in full but also deducted from tax return. | ATO Community