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Witholding declaration

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Good evening. Just enquiring about the withholding declaration form. I had spoken to a coworker about 2 years ago regarding salary sacrifice and HECS repayments, and I got worried and decided to complete a withholding declaration form to increase tax payments per fortnight so I don't end up with debt because I'm not paying enough tax to cover HECS repayments. I recently realised I'm earning under the threshold to start repaying my HECS debt resulting in quite a large amount returned when I Lodge my tax, so I assume I'm paying too much. Do I complete another withholding declaration form to adjust the amount of tax withholding from each pay/cease the voluntary tax payments I agreed to 2 years ago? Thanks!
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Former Community Support

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Hi @Mae1989,

 

Thanks for your question!

 

First, you should make sure that you are still below the HELP repayment threshold, as it has changed from the last financial year.

 

If you are confident that you are still not required to make a compulsory HELP repayment, then you can ask your employer to cease withholding the additional amounts at any time. You should be able to just send them a letter or email asking them adjust the amount of tax that they withhold, or otherwise cease withholding extra tax.

 

A withholding declaration should not be required, unless you had previously asked your employer to stop claiming the tax free threshold, and you would like to start claiming it again.

 

Hope this helps,

 

Rachael B.

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Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Mae1989,

 

Thanks for your question!

 

First, you should make sure that you are still below the HELP repayment threshold, as it has changed from the last financial year.

 

If you are confident that you are still not required to make a compulsory HELP repayment, then you can ask your employer to cease withholding the additional amounts at any time. You should be able to just send them a letter or email asking them adjust the amount of tax that they withhold, or otherwise cease withholding extra tax.

 

A withholding declaration should not be required, unless you had previously asked your employer to stop claiming the tax free threshold, and you would like to start claiming it again.

 

Hope this helps,

 

Rachael B.