When employer withhold HECS from my salary, will the deduction reduce the balance of my HECS loan? or I only paid extra tax for HECS loan and not affect the balance of my HECS loan. Is it right?
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Hi @hncswhb
The portion of HECS taken out each pay period is not directly placed onto your loan account each pay period. The loan account is only updated once you lodge your income tax return.
We have worked out if you have a compulsory repayment obligation for the year and how much it will be, we then transfer the credit to the loan account for you.
You can make voluntary payments at any time during the year. They are in addition to your employers withholding. Voluntary should be paid directly to your loan account this would help with the indexation being applied each year and reduce the amount.
Check out our Paying HECS HELP student loan article on our community page it has some great info.
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Hi @hncswhb
The portion of HECS taken out each pay period is not directly placed onto your loan account each pay period. The loan account is only updated once you lodge your income tax return.
We have worked out if you have a compulsory repayment obligation for the year and how much it will be, we then transfer the credit to the loan account for you.
You can make voluntary payments at any time during the year. They are in addition to your employers withholding. Voluntary should be paid directly to your loan account this would help with the indexation being applied each year and reduce the amount.
Check out our Paying HECS HELP student loan article on our community page it has some great info.
Thank you for replying my question. But I found that the credit has not been transferred to the loan account for reducing the loan balance after I lodging my income tax return. I think that HECS deduction from salary only increase withholding tax because it lists under withholding tax section in the payslip. I don't why?
Hey @hncswhb!
Usually, the payslips won't show a separate amount for HECS amounts withheld because they fall under PAYG withholding. The employer takes extra tax out for the HECS along with the normal tax withheld for the pay cycle. To explain it in detail, we've got an article about HECS repayments here. It's definitely worth checking out!
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