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How is HELP repayment calculated while I'm overseas (with investment property losses)

Newbie

Views 239

Replies 3

My accountant has just submitted my 19-20 taxes.

 

I live overseas and was overseas for that entire period so my taxes are essentially compulsory HELP loan repayments.

Some other pertinent information:

  • I have investment properties that make a loss (I know this doesn't reduce my income for the purposes of HELP)
  • I have some very small stock market investments that make several hundred dollars a year in dividends
  • I have no other income in Australia
  • I calculated my overseas income and converted to AUD with the rate provided by the ATO

 

My HELP repayment was based off an amount higher than my reported overseas income in AUD. My accountant said it had something to do with my reported investment property loss. However I fail to understand how making a loss on an investment property results in a higher income for the purposes of HELP repayment?

 

Example (not my actual numbers):

  1. Overseas income for 19-20 equals $70k AUD.
  2. Made a loss of $10k on investment properties
  3. Made $300 dividend income in Australia

As I calculate it, my HELP repayment (i.e. my taxes) should be $2800, calculated as 4% of $70k?

 

What actually happened was my HELP repayment was calculated as $4400 because the $10k loss was ADDED to my overseas income. This had the double effect of increasing the amount needing to be repayed plus putting me in a higher repayment threshold: $80k at 5.5%.

 

I cannot figure out how a loss results in increased income? Any ideas?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @grahams,

 

In regards to HELP debts, repayment income (RI) is taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

 

You can find this information under Study and training loan repayment thresholds and rates, along with the percentage rates applicable.

 

So based on the example you have provided above your repayment income would be the $70,000 + $10,000 (loss) + $300 = $80,300 Repayment income, this would mean you are in the 5.5% bracket .

 

We also have the Study and training support loans repayment calculator which you can use to confirm the amounted stated payable for your HELP debt.

 

Links

Study and training loan repayment thresholds and rates

Study and training support loans repayment calculator

3 REPLIES 3

Community Moderator

Replies 1

Hi @grahams 

 

We will look into this one and let you know.

Newbie

Replies 0

Thank you very much.

Most helpful response

Community Moderator

Replies 0

Hi @grahams,

 

In regards to HELP debts, repayment income (RI) is taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

 

You can find this information under Study and training loan repayment thresholds and rates, along with the percentage rates applicable.

 

So based on the example you have provided above your repayment income would be the $70,000 + $10,000 (loss) + $300 = $80,300 Repayment income, this would mean you are in the 5.5% bracket .

 

We also have the Study and training support loans repayment calculator which you can use to confirm the amounted stated payable for your HELP debt.

 

Links

Study and training loan repayment thresholds and rates

Study and training support loans repayment calculator