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adams4(Newbie)Newbie
31 July 2024

We were told that there was no interest on a trade support loan. Is this correct? and is HECS and Trade Support different. We didnt fill in an extra TFN form when he started so were unaware when the repayments would start and how they would appear. He has now reached the threshold and will have to pay back. they have added a lump sum due to not paying for the last 12 months i believe, so will the ato advise how much he should be paying each week or do we have to tell his payroll people? And is this taken out after tax and then put against the loan and if it is not enough for the year does he pay more at tax time? thanks in advance.

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135 views
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Taxduck(Taxicorn)Taxicorn
31 July 2024

The trade support loan is indexed each year, same as all study and training loans. See link

Study and training loan indexation rates | Australian Taxation Office (ato.gov.au)

To adjust the amount of tax withheld by an employer to cover the compulsory repayment amount for the loan a withholding declaration form must be completed by the taxpayer. See link

Withholding declaration | Australian Taxation Office (ato.gov.au)

Extra amounts withheld by an employer for loan repayments do not pay off the loan through the year. It is held by the ATO as tax and the compulsory repayment amount is deducted from this when a tax return is lodged.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
31 July 2024

The trade support loan is indexed each year, same as all study and training loans. See link

Study and training loan indexation rates | Australian Taxation Office (ato.gov.au)

To adjust the amount of tax withheld by an employer to cover the compulsory repayment amount for the loan a withholding declaration form must be completed by the taxpayer. See link

Withholding declaration | Australian Taxation Office (ato.gov.au)

Extra amounts withheld by an employer for loan repayments do not pay off the loan through the year. It is held by the ATO as tax and the compulsory repayment amount is deducted from this when a tax return is lodged.

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