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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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Re: Tax percentage rate if hecs is included in the withheld tax amount

Newbie

Views 638

Replies 3

Hi there I am trying to work out what my tax rate percentage should be if I am on 50k a year and have a 23k hecs debt. Will the tax rate be 17.6% or should it be higher?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

Tax on $50k is $7,797 (around 15.6%), you would also pay 2% Medicare and 1% HECS loan repayment, a total of 18.6%.

3 REPLIES 3

Superuser

Replies 1

Hi @antonakisarthur,

 

Thank you for your enquiry.

 

You have identified to me that you earned $50k this financial year so you would fall into the 1.0% repayment rate income threshold for compulsory repayments towards your HELP debt.

 

- Note repayment income (RI) is taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

 

If your question is in regard to how much tax should be withheld then you can use our simple tax calculator.The final calculation happens when you lodge your return.

 

Hope this helps!

Newbie

Replies 0

Thank you for your response. It appears I need to tell my employer to withhold more than what is currently showing on my pay summary

Most helpful response

Devotee

Replies 0

Tax on $50k is $7,797 (around 15.6%), you would also pay 2% Medicare and 1% HECS loan repayment, a total of 18.6%.