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Repayment Question

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Newbie

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So being the start of the new financial year, can I approach my employer an request that they halt my VET fee repayments until I meet the threshold?($45,881)
Is it my right to do so? Are there any downsides to doing this?
Thanks for your help

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Most helpful response

Enthusiast

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When you fill out our TFN declaration when you start a job, you have to answer if you have a HELP debt either yes or no. Your employer will only take out extra tax to cover repayment of the HELP debt when your weekly or fortnightly pay indicates you would be earning over the minimum repayment threshold, with the assumption being that you continue to regularly earn that same amount for the entire financial year.
You would only ask your employer to complete another withholding variation form to stop extra tax coming out to cover your HELP debt if you knew you were not going to earn over the minimum threshold or for example you were intending to pay out the HELP debt voluntarily and would no longer get have a HELP debt at the end of the year.
If you were to tell your employer to stop taking tax out to cover the HELP debt but you still had one, it is technically lying on the form and would result in a big bill next tax time!
2 REPLIES 2

Most helpful response

Enthusiast

Replies 0

When you fill out our TFN declaration when you start a job, you have to answer if you have a HELP debt either yes or no. Your employer will only take out extra tax to cover repayment of the HELP debt when your weekly or fortnightly pay indicates you would be earning over the minimum repayment threshold, with the assumption being that you continue to regularly earn that same amount for the entire financial year.
You would only ask your employer to complete another withholding variation form to stop extra tax coming out to cover your HELP debt if you knew you were not going to earn over the minimum threshold or for example you were intending to pay out the HELP debt voluntarily and would no longer get have a HELP debt at the end of the year.
If you were to tell your employer to stop taking tax out to cover the HELP debt but you still had one, it is technically lying on the form and would result in a big bill next tax time!

ATO Certified Response

Community Moderator

Replies 0

Hi @JQuestion

 

Welcome to our community.

 

@BeFree is correct. If you have a study and training support loan then you are obliged to advise your employer. You can't ask them to stop withholding the additional amount if your year to date income isn't over the repayment threshold.

 

When you complete the Tax file number declaration, you need to answer yes at question 9(a). Your employer will only withhold the additional amount if your weekly, fortnightly or monthly income is higher than the applicable threshold.

 

There is a page on our website that has links to all of the relevant tax tables as well as a tax withheld calculator if you would like to have a look at how this works.

 

Hope this helps.

 

Thanks,

 

ChrisR