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Re: HECS/HELP repayment

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Newbie

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Dear Community Support,
 
I have covered my outstanding HECS/HELP student loan in one final lump sum on June 1st, 2019 to avoid one more indexation. Since I didn't receive a confirmation note or any sort of receipt from ATO, I called in yesterday to double-check that my debt had been cleared and was told that the indexation was applied anyway because the payment had been received a few days later. Surely what counts is the day the payment was made, rather than the day it was received? This could be easily confirmed by my bank if need be. I tried to get answers on the phone but just got a shrug and a "I can't do anything I'm afraid". Since I have already paid thousands of dollars on top of my original loan out of indexation adjustments, could you explain my options in terms of appealing against this last indexation applied to my loan after I had paid the outstanding total?
 
Kind regards,
 
Nicholas
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Hi Nicholas,

I would suggest having a look at www.ato.gov.au/Individuals/Study-and-training-support-loans/Voluntary-repayments as it states 'If you intend to make a voluntary repayment before indexation is applied, it is important to allow enough time for the payment to be received and processed by us before 1 June.'
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Hi Nicholas,

I would suggest having a look at www.ato.gov.au/Individuals/Study-and-training-support-loans/Voluntary-repayments as it states 'If you intend to make a voluntary repayment before indexation is applied, it is important to allow enough time for the payment to be received and processed by us before 1 June.'
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ATO Certified

Community Support

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Hi @nicholasnazari,

 

Welcome to our Community.

 

@N_95 has provided the correct link and information for voluntary repayments and indexation being applied.

 

The ATO administers the collection of HELP debts through the tax system when a client's income is above the minimum threshold for compulsory repayment. We have no discretion to waive in full or part loan accounts, you would need to contact the Department of Finance for further information.

 

I hope this helps, SueO

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Hi Sue,

 

Thank you for your reply. My question still stands though - why was indexation applied even though I made the payment by the deadline? I understand that the policy on voluntary repayment states that "it is important to allow enough time for the payment to be received and processed" - though clearly this is a very nebulous time frame and the only deadline that was confirmed to me on every single phonecall to ATO was that of making the repayment by June 1st. Which I respected.

 

Could you please provide me with an appropriate contact detail in the Department of Finance to write to?

 

Thank you.

 

Regards

 

Nicholas

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Community Support

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Hi @nicholasnazari,

 

I appreciate that you have paid the balance on the due date, but if you have access to your account balance via myGov, you will likely see that the effective date of the payment will be after 1 June.

 

The indexation is calculated and applied on the balance of the account on 1 June each year, so if the payment was not received until after that date, then the indexation will still be added to the account.

 

Because it is not an interest charge, it is calculated on the part of the debt that has remained unpaid for more than 11 months from the effective date. This is why it would not have been imposed if the payment was received prior to 1 June.

 

Unfortunately, we do not have a contact within the Department of Finance. You will need to look at requesting a "Waiver of debt" from their website.

 

I apologise for any frustration that this may have caused you.

 

Thanks,

 

Rachael B.