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HELP Overseas Levy is very high

Newbie

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Replies 3

Hi there -

 

I just finalized my 2019-2020 AU Tax Return and have a very high HELP Overseas Levy / Repayment that I am confused about.  I was hoping to get some clarity if the calculation seems correct.

 

Some info:

- For FY 2019-2020 I was a non-resident for tax purposes (AU citizen living abroad)

- My gross foreign income was ~126k AUD converted from EUR

- My income tax rate in the country I reside in is 42%

- The HELP Overseas Levy = ~11k AUD which is nearly 10% of my gross income

 

My questions;

- Am I entering my income incorrectly?  The section for foreign income asks for the gross income, then applies a 'standard deduction', and states a net income value that isn't actually a net income value - ie it ignores the 42% tax I pay on that salary, and there is nowhere to enter my tax withheld

- Is there somewhere I can clarify the HELP repayment rates (%) for my income category?  This repayment amount is ~10% of my gross annual income, and is nearly 50% of my HELP debt remaining.

 

Thanks for your help, this calculation feels really incorrect.

 

Regards,

 

Cameron

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 2

Hi @ CEdwards

 

Thanks for your question. It looks like the compulsory repayment rate for your income bracket is 9.5% for study and training loans.

 

When you are lodging online and you are personalising your tax return on page 3 you need to select Foreign employment income, then on page 4 prepare return. Once you have this return prepared you will be able to select add next to Foreign employment income. You will then be able to add tax withheld under the tax withheld label. This should calculate things correctly for you.

 

Thank you for contacting us and have a nice day!

3 REPLIES 3

Most helpful response

Former Community Support

Replies 2

Hi @ CEdwards

 

Thanks for your question. It looks like the compulsory repayment rate for your income bracket is 9.5% for study and training loans.

 

When you are lodging online and you are personalising your tax return on page 3 you need to select Foreign employment income, then on page 4 prepare return. Once you have this return prepared you will be able to select add next to Foreign employment income. You will then be able to add tax withheld under the tax withheld label. This should calculate things correctly for you.

 

Thank you for contacting us and have a nice day!

Newbie

Replies 1

Thanks for that @LisaATO  - I've now completed that step and entered the foreign employment income as well as the foreign tax offset, but the calculation still comes out the same, approx 9.5% of my gross salary converted to AUD.  The calculation doesn't seem to take into account the tax withheld or foreign tax offset, which seems strange?  Any ideas if I'm calculating this incorrectly?

 

Thanks for your help.

 

Regards,

 

Cameron

ATO Community Support

Replies 0

Hi @CEdwards,

 

Your compulsory repayment amounts are not calculated solely on your taxable income. It uses something slightly different - what we call repayment income.

 

Your overseas repayments can be a compulsory repayment, or an overseas levy, or both - see example 1.