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Compulsory HECS/HELP Repayments

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My employer does not account for compulsory study loan repayments in my weekly pay. I finally got them to agree to make employee contributions towards my tax to account for the loan before the end of '18-'19 financial year. However, with the start of the new financial year they are still not deducting my compulsory repayments.

How can I get them to acknowledge my weekly compulsory payments?

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ATO Certified

Community Support

Replies 2

Hi @Amy_W,


Welcome to our Community.


If you want to change the amount of tax your employers is withholding, and advise them that you have a study loan you can complete a Withholding declaration. Once this form is provided to your employer they will withhold the additional tax to contribute towards your study loan. 


Once you lodge your tax return we will work out the total tax payable; your notice of assessment will advise if there is an amount to pay or a refund due.

 

You may also like to check out our Tax wiki Paying my HELP debt.


I hope this helps, SueO 
 

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Best answer

ATO Certified

Community Support

Replies 2

Hi @Amy_W,


Welcome to our Community.


If you want to change the amount of tax your employers is withholding, and advise them that you have a study loan you can complete a Withholding declaration. Once this form is provided to your employer they will withhold the additional tax to contribute towards your study loan. 


Once you lodge your tax return we will work out the total tax payable; your notice of assessment will advise if there is an amount to pay or a refund due.

 

You may also like to check out our Tax wiki Paying my HELP debt.


I hope this helps, SueO 
 

Newbie

Replies 1

Thanks @SueO ,

 

The form doesn't really have what I need but I clicked on the link you added and found this:

 

"Compulsory repayments are made when your income exceeds the repayment threshold.  You should inform your employer of your study loan on your tax file number declaration form, they will know to withhold an amount from your pay throughout the year to cover your anticipated compulsory repayment. Your compulsory repayment rate increases as your income increases – the more you earn, the higher your repayment."

 

The issue is this part, "they will know to withhold an amount from your pay throughout the year to cover your anticipated compulsory repayment".

It appears they don't actually know how to withhold an amount throughout the year. They say I haven't earned enough to make repayments, but they don't calculate this on a week to week basis, only by YTD. I am earning around $1,500 per week before tax so I definitely fall under the repayment threshold.

 

Is there a page I can send them that explains HELP Repayments and Thresholds for Employers?

 

Thanks for your help,

Amy

ATO Certified

TaxTime Support

Replies 0

Hi @Amy_W,

 

Thanks for getting in touch!

 

You can refer your employer to the following tax table. This is a standalone table that shows them just the HELP component of what they must withhold from your salary. If you are earning $1,500 per week, they should be withholding $75 per week on top of your usual tax. If they have not been withholding this amount from 1 July 2019, you may have to ask them to withhold a little bit extra to catch up on the missed amounts.

 

If you have already provided them with a withholding declaration and they still will not withhold extra, you can always ask them to do an upwards variation to withhold the extra amount that you have calculated.

 

If you still cannot reach a resolution with your employer, please let us know.

 

Hope this helps,

 

Rachael B.

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