Hi, I'm really struggling here.
First thing of note, I was overdue for the past 4 years of tax returns, First time it's ever happened but I've had a really rough few years. In May, I self reported and arranged to get my returns in by end June, which I did.
Now I have just received my Notice of Assessment and it looks troubling. They have added the Higher Education Loan Repayment, which I have no issue with.
Unfortunately I have an issue with how they have calculated it. The ATO has started the compulsory repayment from the 2019-2020 year, however, I did not commence my studies until 2021. So I have incurred a debt before the debt was incurred, I hope that makes sense.
On top of that they have also charged interest on that debt. It's a significant debt. When I called, at first I was told, yes it doesn't make sense, and then it was referred to technical support, whose apparent response was "Yes, that's just the way it works, like PAYG". I was then told if you had done your tax return on time you wouldn't have incurred your debt then but because you did them all together then you do incur the debt. I asked for the specific legislation that covers this and the person I spoke to could not help. I now have to wait from 2 - 4 days for a response from the manager, as it's Friday night and the lines have closed (although they initially advised it's all good we're here until 8pm because of WA).
Does anyone know the specific legislation that covers this, and if this information is correct? I just don't understand how I am charged for a debt in 2019-2020 that did not occur until 2021. According to the tax agency, the difference it makes overall is going to a $10,000 debt, from a $7,000 refund. It makes no sense.
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