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Re: Help debt

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I'm new

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Replies 5

Hi, If I pay off my whole fee help debt amount middle of the financial year with voluntary repayments, do I need to notify ATO or my employer to stop deducting the monthly repayment from my salary? Or ATO will stop automatically by itself.

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Most helpful response

Devotee

Replies 4

You will need to submit a new TFN declaration to your employeer and don't tick the box that says you have a HECS/Help debt.

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Most helpful response

Devotee

Replies 4

You will need to submit a new TFN declaration to your employeer and don't tick the box that says you have a HECS/Help debt.

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Taxicorn

Replies 3

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year. Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt. Any surplus or shortfall will then be credit/debit to you.

So basically no debt has been paid off until you lodge your tax return, and like I said if you have a tax debt then it pays that off first.

 

Do what @JakeE  suggested also but be aware that it isn't paid off.

 

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Devotee

Replies 2

Sorry I got the impression that OP had paid it off due to them saying voluntary payments and not the compulsory ones.

It may have changed since I did it. But I recall paying “mine off” before the index date to avoid the increase and before the statement was sent, my statement showed zero owed. This was before my tax return was down for that year. That was almost a decade ago. So it may have changed.
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Taxicorn

Replies 1

@JakeE 

 

Sorry, I am not used to seeing people pay HECS using voluntary payments...Smiley Very Happy

 

So yes submit a new TFN declaration to your employer and don't tick the box that says you have a HECS/Help debt.

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Devotee

Replies 0

 


Sorry, I am not used to seeing people pay HECS using voluntary payments...:Smiley Very Happy


LOL

It used to make some sense when there was a discount. And if its going to be paid of in the tax return as the ATO page on voluntary repayments says, "You may also benefit if you make a voluntary repayment before indexation is applied on 1 June."

I know I did with both saving the then discount and indexation.

I recall saving almost 13% from paying it before 1st of june rather then letting the tax return pay it off.