Hi,
Unfortunately I am in the process of going bankrupt with an outstanding HELP Debt.
I earn over my Bankruptcy Base Income Threshold Amount (BITA) $92,408.32 (3 dependents) and am required to contribute to the estate at 50% of after tax earnings. Are HELP repayments counted as Income Tax or is it its own beast?
In short, does this 50% kick in before or after my compulsory HELP repayments? as it makes a 10K difference to my Trust repayments.
i.e. before any tax return,
If it applies before HELP
Making $175k + Super
Income Tax / Medicare - $50k
Net Income $125k
$125k-$92k - $33k
50% - $16.5k owing to estate / Year
If it applies after HELP
Making $175k + Super
Income Tax / Medicare / HELP - $67k
Net Income $104k
$104k-$92k - $12k
50% - $6k owing to estate / Year
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