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Re: HELP Fee debt not updating in ATO/MyGOV record

I'm new

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Hi,

 

I am working as a full time woker. I started my study in September 2017 wiht a Fee HELP debt of 3500. I have Fee Help deductions every month since October 2017 to June 2018 by my employer i.e. 350/month.

 

But the time I am expecting my Help Debt to be zero (as 350 x 10 months = 3500/-). But when I try to lodge my online Tax, I see the 3500 is still appearing as my current liability. So I stopped lodging my tax until I get clarification.

MyGov account is also displaying the current balance as 3500/-.

 

My employer is using STP (single touch payroll) since last 6 months, it means Employer is submitting tax everymonth. But not sure why it is still appearing as my liability.

 

Can you please tell me how this issue will be resolved.

 

Thanks for your cooperation.

 

 

 

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ATO Certified Response

Former Community Support

Replies 1

Hi @ANS,

 

Welcome to our Community!

 

@macfanboy is correct - when your employer withholds amounts to cover your anticipated compulsory repayment, these amounts are remitted to us as part of the employer's PAYG withholding obligations. The additional tax withheld is not applied to your loan account until:

  • you have lodged your tax return, and
  • a compulsory repayment has been calculated based on your repayment income.

When you lodge your income tax return, we'll calculate your total income and tax liability and apply the credits to your account. Once the credits are applied, your account will be updated and if you had too much tax withheld you'll receive a refund or if not enough was withheld you will receive a bill. This will be advised in your Notice of assessment (NOA).

 

To receive assistance completing your return online, you can select the Live chat function on the right of your screen which will connect with an ATO officer.

 

Thanks, JodieH.

5 REPLIES 5

Taxicorn

Replies 0

When your employer witholds money for your debt it is not paid until you lodge your tax return.

That way you will only pay exactly what you have to, this may not be the $3,500 but a calculated % based on your taxable income. 

 

If you wanted to pay it off monthly then you should have made personal contributions, that way your debt would be reduced as soon as you made the payments.

 

 

Most helpful response

ATO Certified Response

Former Community Support

Replies 1

Hi @ANS,

 

Welcome to our Community!

 

@macfanboy is correct - when your employer withholds amounts to cover your anticipated compulsory repayment, these amounts are remitted to us as part of the employer's PAYG withholding obligations. The additional tax withheld is not applied to your loan account until:

  • you have lodged your tax return, and
  • a compulsory repayment has been calculated based on your repayment income.

When you lodge your income tax return, we'll calculate your total income and tax liability and apply the credits to your account. Once the credits are applied, your account will be updated and if you had too much tax withheld you'll receive a refund or if not enough was withheld you will receive a bill. This will be advised in your Notice of assessment (NOA).

 

To receive assistance completing your return online, you can select the Live chat function on the right of your screen which will connect with an ATO officer.

 

Thanks, JodieH.

I'm new

Replies 0

Hi

I’m having a similar issue, every week I have been getting money deducted from my wage for my student loan. I put my tax in last year and still on my myGov summary of what I owe it doesn’t show a single credit to my amount owing. Where is all this money going that gets deducted each week if it’s not getting deducted from my loan?!?

ATO Community Support

Replies 1

Hi @ ANS

 

Welcome and thanks for the query.

 

Help repayments  made to an employer  work similar to withholding from your wages for tax. None of these figures will get applied until you lodge your tax return. Then the outcome will be reflected on the Notice of Assessment (NOA) and only then posted to your statements in MyGov accordingly. So please don't delay lodging on account of this.

 

There are a number of complexities that impact compulsory repayments and posting of HELP debts generally . Id encourage you to check out this link to understand it better. If after you've lodged and you have received your NOA and if your online statement in MyGov still doesn't make sense to you please contact us over the phone for an explanation. We can then tailor our reply to your exact circumstances or investigate if needed.

 

I hope this explanation will help you too @Mikayla33

 

Regards

MarkA

I'm new

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Very Helpful