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emhauv(Newbie)Newbie
28 July 2022

I've recently started salary sacrificing my super contributions and am aware that this impacts on my HECS/HELP repayments (adjusted taxable income, etc). The ATO website recommends speaking to your employer about taking additional funds from your pay to cover the difference, but when I spoke to my payroll department, they said the can't specifically take funds for HECS/HELP, but they can action an 'additional tax deduction'.


If they take the extra funds as an 'additional tax deduction', am I still at risk of having underpaid my HECS/HELP requirements for the financial year?


Or would this 'additional tax deduction' ultimately be used as part of my compulsory HECS/HELP repayment?

1,060 views
2 replies
1,060 views
2 replies

Most helpful response

Most helpful reply

EdenATO(Community Support)Community Support
29 July 2022

Hello there @emhauv


The short answer is yes. Any additional tax amounts you pay would go towards your compulsory payment.


This is because when you lodge your tax return your compulsory repayment is added to your tax liability. This is along with the Medicare levy and any other responsibilities that apply. Any amounts withheld are then used to pay that liability.


You can ensure you do not end up with a tax debt at the end of the financial year by reviewing:


And


This information will help you get an idea of how much should be withheld for both income tax and HELP purposes.

All replies

PayrollDeanne(Taxicorn)Taxicorn
28 July 2022

Hiya @emhauv


Your employer just deducts the additional PAYG withholding and pays it to the ATO as a single amount. When they report your income, PAYGW and super guarantee to the ATO through Single Touch Payroll, there's just a single figure for tax (PAYGW).


Here's some great guidance from the ATO that may better demonstrate how it works. "Reportable super contributions" reflects your salary sacrifice to superannuation.


I hope that helps - Deanne

Most helpful reply

EdenATO(Community Support)Community Support
29 July 2022

Hello there @emhauv


The short answer is yes. Any additional tax amounts you pay would go towards your compulsory payment.


This is because when you lodge your tax return your compulsory repayment is added to your tax liability. This is along with the Medicare levy and any other responsibilities that apply. Any amounts withheld are then used to pay that liability.


You can ensure you do not end up with a tax debt at the end of the financial year by reviewing:


And


This information will help you get an idea of how much should be withheld for both income tax and HELP purposes.

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