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Re: Help debt deductions

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Newbie

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Replies 4

Hi all,

 

I have a question in regards to Help debt repayments. Last Finacial year (17/18) I earnt under the threshold where I need to make payments for me Help debt. Although on certain fortnights I worked a few over time shifts and this pushed me into the bracket where I have to pay back Help bracket, for that fortnight only though. The money that was contributed towards paying of Help debt did not appear to be deducted from my, my gov account. What happens here? Do I just get more money in my tax return?.

 

I have already lodged and got my tax paid for last financial year.

 

Another question, Since new legislation I now am in the bracket where I have to pay my Help debt back every fortnight. This amount that is deducted from my pay should I see it being detucted a few days after from my 'my gov' summary of help debt transactions?

 

Thanks In advance Smiley Happy 

1 ACCEPTED SOLUTION

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Anonymous

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1/ The HECS you paid last financial year should have been returned provided that your total "HECS repayment income" was under the HECS repayment threshold for that year.  https://www.ato.gov.au/Rates/HELP,-TSL-and-SFSS-repayment-thresholds-and-rates/.

 

2/ The ATO states that your HECS debt does not get updated until you lodge your rtn, but you can still view your balance online at myGov.  https://www.ato.gov.au/Individuals/Study-and-training-support-loans/View-your-loan-balance-online/

 

 

ATO general enquiries 13 28 61

 

 

4 REPLIES 4
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Enthusiast

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Hello,

 

To answer the most important one of your questions, your HELP debt is never paid directly by your employer, but by the ATO upon lodging your tax return for the given financial year. So you will only ever see the debt being reduced once per year, coinciding with your lodgment.

 

For last financial year, assuming you had told your employer you had a HELP debt, for those pay cycles you earnt slightly more than normal, your employer would have just withheld a little bit more tax than normal. For this financial year, if you had told your employer you had a HELP debt, they will just withhold slightly more tax than in previous years to help repay the loan.

 

A surprisingly good online tool created by the ATO can be used to predict the tax that would be withheld by your employer in the current financial year, you can choose to select whether you declare the tax-free threshold and whether you have a HELP debt: https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/questions

 

If you don't declare the HELP debt, it just means you will owe more once you lodge your tax return. For some people, the extra tax owed could be a bit much, for others it's easy to pay off, and meant that they got more money throughout the year that they themselves could earn interest on.

 

Don't forget two things.

1) The ATO indexes the HELP debt once per year as well, and it is about a 2.0% increase on any debt that is older than 11 months.

2) You don't get discounts paying off this loan upfront anymore.

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Best answer

Anonymous

Replies 0

1/ The HECS you paid last financial year should have been returned provided that your total "HECS repayment income" was under the HECS repayment threshold for that year.  https://www.ato.gov.au/Rates/HELP,-TSL-and-SFSS-repayment-thresholds-and-rates/.

 

2/ The ATO states that your HECS debt does not get updated until you lodge your rtn, but you can still view your balance online at myGov.  https://www.ato.gov.au/Individuals/Study-and-training-support-loans/View-your-loan-balance-online/

 

 

ATO general enquiries 13 28 61

 

 

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ATO Certified

Community Support

Replies 1

Hi @CT1999,

 

Welcome to our Community!

 

@christopher2813 and @Anonymous have provided some helpful information.

 

As HECS repayments are part of the PAYG system, any payments your employer withholds will be taken off your account at the end of the financial year when your tax return is processed. Your HECS account on myGov will be updated each year when your return has been processed.

 

When you lodge your income tax return, we'll calculate your taxable income and the amount of tax your required to pay. If your HECS repayment income is over the threshold, we'll allocate the amount of tax withheld for HECS to your account. If you haven't reached the repayment threshold and had too much tax withheld you'll receive a refund.

 

If you'd like an account explanation, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator. Have your TFN with you when you call so the operator can ask you some identity questions to access your account.

 

Thanks, JodieH.

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Newbie

Replies 0

Hi Jodie thanks for that,

 

I have just done a voluntary payment, and I have paid out all of my debt. When should I see this deduction in my gov?

 

Thanks C