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EdelD(Newbie)Newbie
19 June 2023

Hi everyone,


I started accumulating HECS debt in 2017 and since then I have not received a refund. I was under the impression that any refund I would be entitled to would firstly offset my HECS debt and then I would pay any outstanding amount. I've just looked back over my statements and the total compulsory repayments I have paid is about $900 more than my debt (adding up the cost of the individual units). Just wondering if it is the case that when you have HECS, you're automatically excluded from any refund? Hopefully all that makes sense.

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Most helpful replyATO Certified Response

AdamH(Master)Master
ATO Certified Response19 June 2023

Compulsory repayments | Australian Taxation Office (ato.gov.au)

When you earn over the threshold ($48,361 for 2023FY) a compulsory payment will be raised.

This is included in your notice of assessment when you lodge your tax return.

The likely reason that you have not been receiving a refund is because not enough tax has been withheld throughout the financial year.


Just wondering if it is the case that when you have HECS, you're automatically excluded from any refund? No, you would still be entitled to a refund of any tax credits that exceed tax payable + Compulsory repayment.


I've just looked back over my statements and the total compulsory repayments I have paid is about $900 more than my debt. Indexation is applied on 1st of June each year, so your HECS balance would be more than just adding up the cost of the individual units.

All replies

Most helpful replyATO Certified Response

AdamH(Master)Master
ATO Certified Response19 June 2023

Compulsory repayments | Australian Taxation Office (ato.gov.au)

When you earn over the threshold ($48,361 for 2023FY) a compulsory payment will be raised.

This is included in your notice of assessment when you lodge your tax return.

The likely reason that you have not been receiving a refund is because not enough tax has been withheld throughout the financial year.


Just wondering if it is the case that when you have HECS, you're automatically excluded from any refund? No, you would still be entitled to a refund of any tax credits that exceed tax payable + Compulsory repayment.


I've just looked back over my statements and the total compulsory repayments I have paid is about $900 more than my debt. Indexation is applied on 1st of June each year, so your HECS balance would be more than just adding up the cost of the individual units.

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Tax refund and HECS debt | ATO Community