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Hello again @Jodie_ATO - I just ran my numbers through a spreadsheet using the A-B-C calculation based on how Chris explained it in his post.
The calculation seems to work well, and appears to give me the same projected return independent of whether I add a TPD lump sum or not (which is good I believe).
Are you able to share anything regarding how LMITO or HELP loan payment calculations are made within this context? Thanks for all of your help!
Glad to hear the TPD information has assisted you.
If you have a HELP loan the compulsory repayment will be determined in relation to your HELP repayment income. This includes the following:
If you reach the minimum threshold you will have a percentage to pay in regards to your HELP repayment income. This will be determined once your return is lodged.
The LMITO will be applied once you lodge your return. If you meet the eligibility for both they act like tax credits and can reduce the amount of tax you have to pay. You can check the amounts applied for the 2021FY via the link below along with links for compulsory repayment threshold for HELP debt.
All the best.
@Jodie_ATO so just to confirm what you are saying - there is no difference between how standard income only vs a combined TPD+standard income are treated for either of these? Essentially the combined amounts (normal income + TPD taxable portion) are used to determine your total assessable income amount? Thanks
The amounts together still make up your taxable income amount. The way they are taxed may vary according to the tax rates for the payments. The taxable income amount will be used when determining your LMITO and your HELP debt.
All the best.
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