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