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ParaEm(Newbie)Newbie
17 June 2023

I have paid my HECS off during the year but given the balance is only reconciled once the tax return has been lodged, it is still showing the full balance as of last year. As such i have been hit with a reasonable amount of interest. This doesn't seem right to me. Can anyone provide any further light on this? In addition, i kept up the HECS payments, so have actually overpaid. I understand that i will get this back at tax time but i won't be seeing the interest on this amount any time soon.

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281 views
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TeddyATO(Community Support)Community Support
21 June 2023

Hello @ParaEm,


The amounts sent to us from your employer for your HECS obligation is just extra withholding. As you stated this is reconciled in the tax return as this is the only time we will know if you meet the requirements for compulsory payments. Unfortunately we have no control over the rules of how indexation is applied and how the HECS obligations is paid. We only manage the collection of the debt as per the HECS legislation. If you believe this to be unfair or in need of change you will need to contact your local political representative.

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Most helpful reply

TeddyATO(Community Support)Community Support
21 June 2023

Hello @ParaEm,


The amounts sent to us from your employer for your HECS obligation is just extra withholding. As you stated this is reconciled in the tax return as this is the only time we will know if you meet the requirements for compulsory payments. Unfortunately we have no control over the rules of how indexation is applied and how the HECS obligations is paid. We only manage the collection of the debt as per the HECS legislation. If you believe this to be unfair or in need of change you will need to contact your local political representative.

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My HECS balance has technically been paid during year but interest still applied? | ATO Community