Announcements
Looking for information on the JobKeeper extension? Watch the video in our latest news article.

ATO Community

HELP compulsory repayment

Highlighted

Newbie

Views 136

Replies 1

Hi, I pay a certain percent out of my wage (i am a nurse so my wage varies) towards my HELP debt throughout the year. So at the end of 2019 I had paid $4600 towards my HELP however my compulsary repayment was $6800. This was added as a debit on my Notice of Assessment and I was billed the full $6800 which causes quite a large debt for me and has done so the last couple years. The only money taken off of my debt is the $6800 compulsary repayment that I am debited at tax time. So my question is what has happened to my $4600 that I paid throughout the year - should I only be getting debited $2200 or am I missing something obvious?

The same thing is going to happen this year with a compulsary repayment of $7000 and I have paid $5000 throughout the year but it doesnt seem to be like this money is being accounted for and I am going to have another large debt.

Sorry if I am being dumb.

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Master

Replies 0

Hi @hware

 

Thank you for reaching out to our community.

 

Your employer, through the information you provided on your TFN declaration, is to calculate the amount to withhold from salary and wages that goes towards your pay as you earn tax and also towards your anticipated  compulsory HELP repayment. 

 

As your HELP debt compulsory repayment is determined when you lodge your tax return, the actuals of your compulsory repayment happen at this time.. 

 

The payments each pay day, do not go as a direct payment against your actual HELP debt. They are a withholding so when you lodge your tax return, the extra withholding amounts are offset against your calculated HELP compulsory repayment.

 

If you are finding that the amount of tax withheld is not meeting your tax calculation including your HELP compulsory repayment, you should talk to your employer to confirm that they are withholding correctly as per the tax tables.

 

If the withholding is correct, the situation you are experiencing may be a result of your pay amount varying each pay day. 

 

There is an option of asking your employer to do an upward variation of your PAYG withholding each pay day so that the calculation when you lodge your tax return,  more closely meets the repayment required that includes your HELP compulsory repayment.

 

1 REPLY 1
Highlighted

Most helpful response

Master

Replies 0

Hi @hware

 

Thank you for reaching out to our community.

 

Your employer, through the information you provided on your TFN declaration, is to calculate the amount to withhold from salary and wages that goes towards your pay as you earn tax and also towards your anticipated  compulsory HELP repayment. 

 

As your HELP debt compulsory repayment is determined when you lodge your tax return, the actuals of your compulsory repayment happen at this time.. 

 

The payments each pay day, do not go as a direct payment against your actual HELP debt. They are a withholding so when you lodge your tax return, the extra withholding amounts are offset against your calculated HELP compulsory repayment.

 

If you are finding that the amount of tax withheld is not meeting your tax calculation including your HELP compulsory repayment, you should talk to your employer to confirm that they are withholding correctly as per the tax tables.

 

If the withholding is correct, the situation you are experiencing may be a result of your pay amount varying each pay day. 

 

There is an option of asking your employer to do an upward variation of your PAYG withholding each pay day so that the calculation when you lodge your tax return,  more closely meets the repayment required that includes your HELP compulsory repayment.