HECS is taken compulsorily from my salary - why hasn't it been added to my HECS debt?
For the past 3 years, it appears no payments have been made on my HECS despite compulsory payments coming out on a fortnightly basis. Where has the money gone? Who is responsible for sending it to HECS?
I am accumulating indexation amounts and my repayments are not being deducted from my debt.
When your employer withholds amounts for hecs from your salary it isn’t applied to your hecs loan straight away.
Instead it is bundled together with your tax withheld and sent to the ATO as a single lump sum.
When you do your annual tax return, only at that point so they calculate your tax and hecs liability, which is based on your taxable income. If you’ve had too much money withheld throughout the year you get a refund, if it’s too little you will be asked to pay.
Why has nothing been applied on the last 3 years? Could be a number of reasons. Was your taxable income too low to repay anything? Have you lodged they returns?
You’d have to look back on your notices if assessment each year to see if you’ve been charged hecs.
When your employer withholds amounts for hecs from your salary it isn’t applied to your hecs loan straight away.
Instead it is bundled together with your tax withheld and sent to the ATO as a single lump sum.
When you do your annual tax return, only at that point so they calculate your tax and hecs liability, which is based on your taxable income. If you’ve had too much money withheld throughout the year you get a refund, if it’s too little you will be asked to pay.
Why has nothing been applied on the last 3 years? Could be a number of reasons. Was your taxable income too low to repay anything? Have you lodged they returns?
You’d have to look back on your notices if assessment each year to see if you’ve been charged hecs.
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