Hi @hyperbbb111,
The $8,000 your employer withholds is based on your income, not how much you add to your HECS‑HELP debt each year. If your income is over the repayment threshold, you must make repayments on your total loan. As @YellowPotato mentioned, your employer uses set tax tables (STSL rates) to work this out.
You can’t use a PAYG withholding variation to reduce or stop these amounts. Variations don’t apply to study loan repayments.
You can only ask your employer to stop withholding for your HECS‑HELP loan once your debt is fully paid. This is done by completing a new withholding declaration form and letting your employer know you no longer have a study loan.
The money taken from your pay doesn’t go straight onto your loan. It’s held with your tax. Your Student loan repayment is worked out and applied when you lodge your tax return each financial year.
If too much is taken out during the year, you’ll get the extra back as a refund after you lodge. You can check your loan balance in ATO online services by selecting, Tax > Accounts > Loan accounts.
Have a read through our article on, paying my HECS HELP student loan. It should help.
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