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Hecs Debt

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Hi,

My employer is taking out money from my wages to repay my HECS debt and has done so since 29th January 2019, I have just checked my loan and there is no record of any credits going agains this only debit amounts for the interest that is charged due to indexation. Can you please explain to me why this could be happening. 

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Former Community Support

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Thanks for posting @JessRobinson 

 

Generally, your employer will withhold tax based on the information you provided in your TFN declaration form. When you lodge your income tax return, we'll calculate your tax liability based on the total amount of income reported. The payments your employer withholds during the financial year will then credit your tax liability and any remaining withholding will go towards your HECS debt. If you have other income you've reported in your tax return, you can choose to vary the amount of tax that is withheld from your pay by completing a withholding declaration.

 

The compulsory repayment rate increases as your income increases. The more you earn, the higher your repayments. The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings. You can find more information about rates on our website.

 

Hope this information helps!

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Thanks for posting @JessRobinson 

 

Generally, your employer will withhold tax based on the information you provided in your TFN declaration form. When you lodge your income tax return, we'll calculate your tax liability based on the total amount of income reported. The payments your employer withholds during the financial year will then credit your tax liability and any remaining withholding will go towards your HECS debt. If you have other income you've reported in your tax return, you can choose to vary the amount of tax that is withheld from your pay by completing a withholding declaration.

 

The compulsory repayment rate increases as your income increases. The more you earn, the higher your repayments. The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings. You can find more information about rates on our website.

 

Hope this information helps!