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HECS Debt Repayment

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Hi,

I’m just wanting some clarification on repayment of my HECS loan.
I have earned over the threshold for the past six months and have noticed I am being taxed higher than I should (for my pay bracket). I figured this was due to the repayment of my loan. I however haven’t seen my loan amount move at all when viewing on the ATO. Does the extra amount I’ve been taxed then get deducted from my loan amount at the end of the financial year?

Thanks
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Most helpful response

Devotee

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The extra tax withheld for your HECs debt Is to cover what they predict will be the amount you need to repay at the end of the financial year. When you lodge your tax return they will calculate how much tax you need to pay and how much HECS you need to repay based on the annual income your report.
You won’t see your HECS loan amount reduce until you lodge your tax return and the repayment is made.
1 REPLY 1

Most helpful response

Devotee

Replies 0

The extra tax withheld for your HECs debt Is to cover what they predict will be the amount you need to repay at the end of the financial year. When you lodge your tax return they will calculate how much tax you need to pay and how much HECS you need to repay based on the annual income your report.
You won’t see your HECS loan amount reduce until you lodge your tax return and the repayment is made.