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Re: Too much HECS withheld

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I'm new

Views 2655

Replies 1

As I salary package I asked my employer to take out extra money to repay my HELP debt. Over the year $6067 was withheld from my pay but only $4657 was actually taken off my debt.

 

Where did the rest of the money go?

1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

Enthusiast

Replies 0

While employers do withold HECS/HELP debt repayments from your pay in anticipation of amounts owed, much like normal income tax witholding, compulsory repayments are made through your tax return. If you've received your 2017 Notice of assesment, it should show the final amount of compulsory payments owed for the year, and if you paid too much toward this through the witholding system this would likely be returned to you in the same way excess tax witholding payments are. 

 

If you were making/trying to make voluntary repayments:"

Salary packaging

Some people use salary packaging arrangements with their employers to pay off their loans faster by making voluntary repayments.

If you make such an arrangement, you must:

  • make your voluntary repayments by BPAY, credit card or direct credit
  • stop making repayments as soon as you have paid off your loan."

It seems like the correct way to do these would be through the usual voluntary repayment channels, rather than employer witholding.

 

If you've received your NOA and the amounts missing are not listed there / have not been returned to you via a refund, it's probably best to get in touch with the ATO - it could be some kind of delay in processing but it's worth making sure. If you haven't received your NOA yet, it might be best to wait until you have received it, as this may resolve the issue. 

 

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This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

1 REPLY 1
Highlighted

Most helpful response

ATO Certified Response

Enthusiast

Replies 0

While employers do withold HECS/HELP debt repayments from your pay in anticipation of amounts owed, much like normal income tax witholding, compulsory repayments are made through your tax return. If you've received your 2017 Notice of assesment, it should show the final amount of compulsory payments owed for the year, and if you paid too much toward this through the witholding system this would likely be returned to you in the same way excess tax witholding payments are. 

 

If you were making/trying to make voluntary repayments:"

Salary packaging

Some people use salary packaging arrangements with their employers to pay off their loans faster by making voluntary repayments.

If you make such an arrangement, you must:

  • make your voluntary repayments by BPAY, credit card or direct credit
  • stop making repayments as soon as you have paid off your loan."

It seems like the correct way to do these would be through the usual voluntary repayment channels, rather than employer witholding.

 

If you've received your NOA and the amounts missing are not listed there / have not been returned to you via a refund, it's probably best to get in touch with the ATO - it could be some kind of delay in processing but it's worth making sure. If you haven't received your NOA yet, it might be best to wait until you have received it, as this may resolve the issue. 

 

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This is my personal view; I’m an ATO employee who chooses to help out here in my own time.