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Re: Weekly deductions for HECS debt

Newbie

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Every week my employer takes out a HECS debt deduction, does this go towards my final repayment at tax time or is the fee at tax time on top of whatever is taken throughout the year
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ATO Certified Response

Former Community Support

Replies 2

Hi @Kfayet,

 

Thanks for reaching out.

 

Under the pay as you go (PAYG) withholding system, your employer will withhold an additional amount from your salary and wage income to cover your compulsory repayment.

 

As your employer is withholding an amount from your salary and wages each week to cover your HECS debt, these amounts will contribute to your compulsory repayment amount when you lodge your income tax return.

 

If you were to make a voluntary repayment, the voluntary repayment is in addition to compulsory repayments/overseas levy and is not refundable.

 

There is more information about compulsory repayments and study and training support loans on our website.

 

I hope this helps.

3 REPLIES 3

Most helpful response

ATO Certified Response

Former Community Support

Replies 2

Hi @Kfayet,

 

Thanks for reaching out.

 

Under the pay as you go (PAYG) withholding system, your employer will withhold an additional amount from your salary and wage income to cover your compulsory repayment.

 

As your employer is withholding an amount from your salary and wages each week to cover your HECS debt, these amounts will contribute to your compulsory repayment amount when you lodge your income tax return.

 

If you were to make a voluntary repayment, the voluntary repayment is in addition to compulsory repayments/overseas levy and is not refundable.

 

There is more information about compulsory repayments and study and training support loans on our website.

 

I hope this helps.

Newbie

Replies 1

Hi @Alyce 

 

I just lodged my tax return and when I calculated it, it added my compulsory HELP repayment amount based on my income; however, it did not deduct the money I have already paid throughout the year from the annual compulsory repayment amount.

 

E.g. (using different figures), my compulsory repayment amount for the year was $6,000 and my employer took $2,000 of my pay as STSL payments, but my tax liability for HELP repayments was still $6,000 rather than $4,000 ($6,000 - $2,000).

 

Does this mean my employer has not inserted the STSL payments into the ATO system or did I need to include it as a deduction or other line item in my tax return?

 

Thanks

 

J

ATO Community Support

Replies 0

Hi @JY2397,

 

The amount shown on your Notice of Assessment (NoA) is correct. That is, it shows the full amount of the compulsory repayment without any amounts deducted.

 

Below that on the NoA is a section with the title Less Pay as you go (PAYG) credits and other entitlements. Under that is a line called PAYG withholding. The amount your employer deducted for your income tax and your HELP debt is all included in that single amount.

 

Hope this helps.

RochL