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Re: Too much HELP debt repayed leading to a tax debt

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Hi,

 

For the tax period 16-17 my employer paid a larger amount toward my HELP debt than was necessary under the compulsary repayments percentage based on my taxable income. This lead to my tax return being in debt instead of recieving a refund. 

 

I am wondering what the correct course of action is to have this looked at and amended? I have sent off a letter to the ATO with the correct dispute forms, is this the correct method? It seems to be taking a while. Is there anything else I can do to have this looked at? 

 

Thanks

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Devotee

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Hi @joshs93,

 

Thanks for getting in touch! We'd need to ask you some personal questions to verify your identity before we can access your account and investigate what happened here. We advise against providing these kinds of details on a public forum, so we can only provide general info and reasons why this may have occurred.

 

If you have a higher education loan program (HELP) account, you're required to advise your employer on your tax file number declaration form. This is so they can withhold extra amounts to help you repay your loan once you reach the repayment threshold. When your employer reports these amounts to us, it's included as part of your tax as a 'credit'. It isn't until you lodge your return that we apply these 'credits' to your income tax and HELP accounts.

Usually, if too much tax has been withheld, you'll receive a refund - so it sounds as though either (1) not enough tax was withheld to cover your total tax and HELP repayment or (2) you haven't factored other amounts into your HELP repayment income.

 

If you've told your employer that you have a HELP debt, they need to withhold extra amounts as per the HELP tax table. You can use the tax withheld calculator on our website to check how much your employer should withhold each pay period.

 

If you earn income other than salary and wages, this may be included into HELP repayment income. Your repayment income is calculated using the following amounts from your tax return and payment summaries:

  • taxable income
  • reportable fringe benefits
  • total net investment loss (which includes net rental losses)
  • reportable super contributions
  • any exempt foreign employment income amounts.

If you have access to certain fringe benefits or salary sacrifice super contributions, this may reduce your taxable income but is included in your HELP repayment income. This means you may end up with a shortfall in the amount of tax withheld.

 

If you'd like someone to explain your HELP account balance or why your notice of assessment resulted in a debt, phone us on 13 28 61 between 8:00am and 6:00pm Monday to Friday.

 

Thanks!

1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

Hi @joshs93,

 

Thanks for getting in touch! We'd need to ask you some personal questions to verify your identity before we can access your account and investigate what happened here. We advise against providing these kinds of details on a public forum, so we can only provide general info and reasons why this may have occurred.

 

If you have a higher education loan program (HELP) account, you're required to advise your employer on your tax file number declaration form. This is so they can withhold extra amounts to help you repay your loan once you reach the repayment threshold. When your employer reports these amounts to us, it's included as part of your tax as a 'credit'. It isn't until you lodge your return that we apply these 'credits' to your income tax and HELP accounts.

Usually, if too much tax has been withheld, you'll receive a refund - so it sounds as though either (1) not enough tax was withheld to cover your total tax and HELP repayment or (2) you haven't factored other amounts into your HELP repayment income.

 

If you've told your employer that you have a HELP debt, they need to withhold extra amounts as per the HELP tax table. You can use the tax withheld calculator on our website to check how much your employer should withhold each pay period.

 

If you earn income other than salary and wages, this may be included into HELP repayment income. Your repayment income is calculated using the following amounts from your tax return and payment summaries:

  • taxable income
  • reportable fringe benefits
  • total net investment loss (which includes net rental losses)
  • reportable super contributions
  • any exempt foreign employment income amounts.

If you have access to certain fringe benefits or salary sacrifice super contributions, this may reduce your taxable income but is included in your HELP repayment income. This means you may end up with a shortfall in the amount of tax withheld.

 

If you'd like someone to explain your HELP account balance or why your notice of assessment resulted in a debt, phone us on 13 28 61 between 8:00am and 6:00pm Monday to Friday.

 

Thanks!

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