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Re: Can I pay my study loan

Newbie

Views 395

Replies 2

Hi, 

 

I was wondering if it was possible to make voluntary repayments on my help study loan instead of the compulsory repayments coming out of my payslip?

 

kind regards,

 

Stephen King

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

Hi @Stephen7,

 

When you commence employment you would need to declare you have a HELP loan. The employer is required to withhold according to the tax table and your income threshold. If you wanted to adjust the amount of tax withheld you would need to complete a withholding variation form. You can discuss this with your employer.

 

After lodging your return we determine if you reached the income threshold for a compulsory HELP repayment. If so, we use the extra tax credits withheld from your employer to pay the compulsory amount. If there are no tax credits you would have a debt to pay. If you do not reach the HELP threshold we refund the extra tax credits to you. As long as you do not have any other ATO or government debt.

 

You can make voluntary repayments to your HELP account anytime, however this will not factor in to the compulsory amount unless you pay it after we issue the compulsory repayment advice amount. 

 

All the best.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @Stephen7,

 

When you commence employment you would need to declare you have a HELP loan. The employer is required to withhold according to the tax table and your income threshold. If you wanted to adjust the amount of tax withheld you would need to complete a withholding variation form. You can discuss this with your employer.

 

After lodging your return we determine if you reached the income threshold for a compulsory HELP repayment. If so, we use the extra tax credits withheld from your employer to pay the compulsory amount. If there are no tax credits you would have a debt to pay. If you do not reach the HELP threshold we refund the extra tax credits to you. As long as you do not have any other ATO or government debt.

 

You can make voluntary repayments to your HELP account anytime, however this will not factor in to the compulsory amount unless you pay it after we issue the compulsory repayment advice amount. 

 

All the best.

ATO Community Support

Replies 0

Hi @Stephen7 and @Jodie_ATO,

 

To clarify, even if you make a voluntary repayment to your HELP account after we have advised of your compulsory repayment, you will still need to pay the compulsory repayment amount as this is part of the income tax return.

 

Hope this helps.

 

Regards

RochL