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rmmd11(Newbie)Newbie
25 Aug 2022

My HECS is sitting on $51,255.54 before Indexation on June 2022. I work full time and has STSL Component deducted on my pay weekly. By end of financial year, $2,447.00 has been put through for STSL, and when I filed my tax return with my accountant, I had to pay 3.5% of my gross.


When will this $2447 be showing in my loan statement? How is it actually calculated if this will be deducted to my loan or am I just throwing money away.

And why do I have to pay the 3.5% if the STSL is being deducted on my weekly pay run?

3,859 views
1 replies
3,859 views
1 replies

Most helpful response

Most helpful reply

EthanATO(Community Support)Community Support
27 Aug 2022

Hi @rmmd11,


The amounts your employer has withheld over the year are sent to us where we hold them with your regular income tax. The amounts aren't added to your loan until you lodge your return. This is because we don't know how much your compulsory repayment will be until you lodge your return for the year - we calculate it then. Your compulsory repayment is then made using the withheld amounts. This means the $2,447 won't be paid separately, but is instead included in the total payment made after your tax return has processed.


When you view your notice of assessment and if you have to make a compulsory repayment then this amount will be reflected as part of your total tax liability and your loan account will be credited. We have an article about paying your student loan that explains how it works.

All replies

Most helpful reply

EthanATO(Community Support)Community Support
27 Aug 2022

Hi @rmmd11,


The amounts your employer has withheld over the year are sent to us where we hold them with your regular income tax. The amounts aren't added to your loan until you lodge your return. This is because we don't know how much your compulsory repayment will be until you lodge your return for the year - we calculate it then. Your compulsory repayment is then made using the withheld amounts. This means the $2,447 won't be paid separately, but is instead included in the total payment made after your tax return has processed.


When you view your notice of assessment and if you have to make a compulsory repayment then this amount will be reflected as part of your total tax liability and your loan account will be credited. We have an article about paying your student loan that explains how it works.

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Why is my STSL not shown on my ATO? How is it calculated that it gets deducted to my actual HECS? | ATO Community