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Re: Tax debt to pay HECS

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Hi all,

 

First post on this board, so I'm not certain as to whether or not this question has been asked before but her goes:

 

I owe a tax debt of around $2,000. Am I able to pay that $2,000 towards my HECS HELP debt instead of towards income tax? Especially, seeing as I owe quite a significant amount on the debt...

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Hi @atgriffo,

 

Welcome to our Community!

 

The information provided by @macfanboy is correct - if you have an Income tax debt and a HECS account, these are two separate debts which need to be paid separately by the required due date.

 

If you'd like to make additional payments (other than compulsory repayment) you can make voluntary payments by Bpay, credit card or direct debit using your payment reference number (PRN) for your HECS account.

 

If you have further questions regarding your accounts, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Your Tax obligations and your HECS obligations are two different things.

 

You need to pay your tax bill AND your HECS debt (if Repayable Income is OVER the threshold and at the rate specified) 2018-19 starts at $51,957 at  2.0% of that.

 

https://www.studyassist.gov.au/paying-back-your-loan/loan-repayment

 

When people have a debt and tick the box on their tax declaration form and have extra taken out each pay this is how that works...

 

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/debited to you.

Repayment income is calculated from the amounts given on your income tax return for:
your taxable income;
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.

Best answer

ATO Certified

Community Support

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Hi @atgriffo,

 

Welcome to our Community!

 

The information provided by @macfanboy is correct - if you have an Income tax debt and a HECS account, these are two separate debts which need to be paid separately by the required due date.

 

If you'd like to make additional payments (other than compulsory repayment) you can make voluntary payments by Bpay, credit card or direct debit using your payment reference number (PRN) for your HECS account.

 

If you have further questions regarding your accounts, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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