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HECS debt

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Newbie

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I'm hoping someone can help me with this, just need to understand before I do my tax return for this year. So I have being going back through older payslips and older notice of assessments. My payslips show a deduction for my HECS all the way back to 2018 and is never mentioned on my notice of assesmetns and nothing has ever come off my HECS debt.

 

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Initiate Registered Tax Practitioner

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Hi Jess,

 

When you complete your tax file number declaration with every new employer, one of the questions asks if you have a HELP debt.  If you answer yes, your employer is required to use a different tax table when they calculate your pay each period.  This different tax table withholds more than usual, in anticipation that you may have a compulsory HELP repayment at the end of the year.

 

Where you are working variable hours, it's not uncommon that you might have some bigger pays which will trigger a HELP deduction from your pay.  This doesn't necessarily mean you will have a compulsory HELP repayment that year though.  You will only have a compulsory HELP repayment if when you lodge your tax return, your adjusted taxable income is > the minimum threshold ($46,620 for the 2021 year).  If you don't end up needing that HELP deduction because your income is too low, it'll get refunded when you lodge your tax return.

 

If your income is greater than the minimum threshold the size of your repayment goes up depending on your income.  You can find out the relevant amounts here -> https://www.ato.gov.au/Rates/HELP,-TSL-and-SFSS-repayment-thresholds-and-rates/

 

You can also make an additional voluntary repayment if you'd like to pay it off quicker.  Here is more information on how to do this -> https://www.ato.gov.au/Individuals/Study-and-training-support-loans/Voluntary-repayments/

1 REPLY 1
Highlighted

Most helpful response

Initiate Registered Tax Practitioner

Replies 0

Hi Jess,

 

When you complete your tax file number declaration with every new employer, one of the questions asks if you have a HELP debt.  If you answer yes, your employer is required to use a different tax table when they calculate your pay each period.  This different tax table withholds more than usual, in anticipation that you may have a compulsory HELP repayment at the end of the year.

 

Where you are working variable hours, it's not uncommon that you might have some bigger pays which will trigger a HELP deduction from your pay.  This doesn't necessarily mean you will have a compulsory HELP repayment that year though.  You will only have a compulsory HELP repayment if when you lodge your tax return, your adjusted taxable income is > the minimum threshold ($46,620 for the 2021 year).  If you don't end up needing that HELP deduction because your income is too low, it'll get refunded when you lodge your tax return.

 

If your income is greater than the minimum threshold the size of your repayment goes up depending on your income.  You can find out the relevant amounts here -> https://www.ato.gov.au/Rates/HELP,-TSL-and-SFSS-repayment-thresholds-and-rates/

 

You can also make an additional voluntary repayment if you'd like to pay it off quicker.  Here is more information on how to do this -> https://www.ato.gov.au/Individuals/Study-and-training-support-loans/Voluntary-repayments/