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No History of any payment to HELP Debt

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Just a query,

 

I have been out of university for 2 years (employed since the beginning of 2016) now, and have been in full-time salary-payment employment since then.

 

To date, there is no single record of any payment towards my HELP debt. I have always had pay witheld as part of PAYG.

 

Note that I understand I will only see a record of any payment for the current financial year (17-18) after I have had this year's tax return lodgement assessed. This is more in relation to the previous financial year.

 

If someone could clarify for me the following process; so I understand it clearly:

1. Over the course of the financial year, each salary payment has PAYG $X amount deducted as Taxable Income AND $Y amount deducted specifically for HELP. (As shown on your payslip; Y amount determined by ATO PAYG Witholding Table)

2. This sum is kept in remittance by the ATO over the course of the financial year. (PAYG Withholding on Notice of Assessment)

3. Tax Return Lodgement for the financial year ended is lodged.

4. Tax Refund Calculated as follows:

  • Taxable Income (Debit)
  • Offsets (Credit)
  • Liabilities (Debit)
  • Compulsory Loan Repayment (Debit)
    • Calculated based on income threshold
    • In my instance, (Z Salary) = 5.0%; % being remaining HELP debt
  • PAYG withheld (Credit)
  • RESULT (Credit=Tax Return, Debit=Tax Owing)

Therfore, all other things equal; if Compulsory Loan Repayment > PAYG Withheld, you can expect to get stung with OWING rather than expecting a return.

 

If anyone can help with any of the above it'd be appreciated.

 

 

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Best answer

Devotee

Replies 0

Hi @jlsheard,

 

Welcome to Community! The process you've outlined in your post is pretty much bang on - we've added some extra details to explain it in full.

  1. If you have a higher education loan program (HELP) debt and advised your employer on your tax file number declaration form, your employer will withhold additional amounts from your salary each pay period. They work out how much extra to withhold using the relevant HELP, Student Start-up Loan and Trade Support Loan tax table.
  2. Your employer advises us how much tax they've withheld and forwards pay as you go withholding (PAYG-W) amounts to us as required (some employers report quarterly, some monthly - it depends on where you work). At this point, your employer is only advising how much they've withheld from all their employees for that period.
  3. At the end of the financial year, your employer sends us a PAYG W annual report, where they advise how much each employee has had withheld. This report is required by 14 August each year. We add information from the PAY W annual report to your account as pre-filling.
  4. When you lodge your tax return, we calculate your tax payable and your compulsory HELP repayment for the year.
  5. We then balance your tax payable and compulsory repayment against the amount of tax withheld. If your employer has withheld enough from your salary and wages, your accounts will either balance or you'll receive a refund; if not enough has been withheld, you'll receive a tax bill.
  6. We issue your notice of assessment, which is an itemised account of the amount of tax you owe on your taxable income. It will show: your total income, taxable income, deductions you've claimed, offsets you're entitled to, your compulsory HELP repayment and the amount of tax withheld. Your notice of assessment will also tell you whether you have a refund or a tax bill.

If you'd like a detailed explanation of either your notice of assessment or your current HELP account balance, we can do that too! Phone us on 13 28 61 between 8:00am and 6:00pm Monday to Friday and select option 4, then option 3 in the automated voice menu to get through to the right person.

 

Thanks.

1 REPLY 1

Best answer

Devotee

Replies 0

Hi @jlsheard,

 

Welcome to Community! The process you've outlined in your post is pretty much bang on - we've added some extra details to explain it in full.

  1. If you have a higher education loan program (HELP) debt and advised your employer on your tax file number declaration form, your employer will withhold additional amounts from your salary each pay period. They work out how much extra to withhold using the relevant HELP, Student Start-up Loan and Trade Support Loan tax table.
  2. Your employer advises us how much tax they've withheld and forwards pay as you go withholding (PAYG-W) amounts to us as required (some employers report quarterly, some monthly - it depends on where you work). At this point, your employer is only advising how much they've withheld from all their employees for that period.
  3. At the end of the financial year, your employer sends us a PAYG W annual report, where they advise how much each employee has had withheld. This report is required by 14 August each year. We add information from the PAY W annual report to your account as pre-filling.
  4. When you lodge your tax return, we calculate your tax payable and your compulsory HELP repayment for the year.
  5. We then balance your tax payable and compulsory repayment against the amount of tax withheld. If your employer has withheld enough from your salary and wages, your accounts will either balance or you'll receive a refund; if not enough has been withheld, you'll receive a tax bill.
  6. We issue your notice of assessment, which is an itemised account of the amount of tax you owe on your taxable income. It will show: your total income, taxable income, deductions you've claimed, offsets you're entitled to, your compulsory HELP repayment and the amount of tax withheld. Your notice of assessment will also tell you whether you have a refund or a tax bill.

If you'd like a detailed explanation of either your notice of assessment or your current HELP account balance, we can do that too! Phone us on 13 28 61 between 8:00am and 6:00pm Monday to Friday and select option 4, then option 3 in the automated voice menu to get through to the right person.

 

Thanks.

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