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Re: Extra Tax for HELP Debt

This post is archived and may not be up-to-date.

Newbie

Views 895

Replies 2

Hi, 

 

I have a staff member who has a HELP debt (HECS) they have filled out their Tax File Number Declaration form and ticked the box for Help Debt, but they would like to pay a little extra. The staff member would like to know if they pay extra tax per pay will this be automatically applied to the HELP Debt? 

 

Regards 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 1

@FinanceHBNC 

 

No.

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year. Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt. Any surplus or shortfall will then be credit/debit to you.



Repayment income is calculated from the amounts given on your income tax return for:
your taxable income- disregarding any assessable First Home Super Saver ( FHSS) released amounts ;
reportable fringe benefits (reported on your payment summary);
total net investment loss (which includes net rental loss);
reportable super contributions; and
exempt foreign employment income amounts.

2 REPLIES 2

Most helpful response

Taxicorn

Replies 1

@FinanceHBNC 

 

No.

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year. Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt. Any surplus or shortfall will then be credit/debit to you.



Repayment income is calculated from the amounts given on your income tax return for:
your taxable income- disregarding any assessable First Home Super Saver ( FHSS) released amounts ;
reportable fringe benefits (reported on your payment summary);
total net investment loss (which includes net rental loss);
reportable super contributions; and
exempt foreign employment income amounts.

Newbie

Replies 0

Thank you, 

 

That is what i said to the employee, but unfortunately they seem to think sometimes we don't have the correct answer and would prefer to hear or see it from someone else.

 

Thank you again