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HELP Debt additional repayments

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Newbie

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Hello, 

My question relates to additional contributions made towards my HELP debt made by my employer each pay.

"When your employer withholds additional amounts to cover your anticipated compulsory repayment, these amounts are remitted to the ATO as part of the employer's PAYG withholding obligations.

The additional tax withheld is not applied to your loan account until:

  • you have lodged your tax return, and
  • a compulsory repayment has been calculated based on your repayment income."

 

When i asked my employer about the additional deductions i was told:

"As your total tax for the last financial year was made up of PAYG $12,762.00 and HELP $1,514.00. The total tax sent to the ATO was $14,276.00. 

$12,762.00 is based on your Taxable Income, with HELP being deducted in addition.

HELP is calculated as a percentage of what you earned each fortnight and shown separately on your payslip. But, this is sent off as a total amount each fortnight and is not split into PAYG and HELP.

It is only when you do your Tax Return, this is calculated out and the ATO can put this towards your HELP DEBT."

 

I have completed my tax return and a compulsary repayments has been applied to my Help debt, but i cannot see the additional deductions made by my employer anywhere on my tax return or on my HELP balance. I can only see the taxable income and the total tax sent to the ATO which was $14,276.00.

Is there someone else i need to do to have the additonal deductions put towards my debt?

 

 

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Most helpful response

Community Support

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Hi @DTagg21,

 

Thank you for reaching out to us. Your Employer withholds according to what you declared on your TFN declaration. If you advised you have a HELP debt he would be withholding per pay in line with tax table with HELP debt. Once you lodge your tax return all your tax credits (income and HELP) are applied to your account.

 

There will be an amount to cover your income along with an amount to cover a compulsory repayment for HELP. If you do not reach the compulsory repayment threshold and have no other ATO or Government debts the extra amount withheld throughout the financial year (FY) will be refunded to you. 

 

Hope this helps.

 

Regards,

Jodie2.   

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @DTagg21,

 

Thank you for reaching out to us. Your Employer withholds according to what you declared on your TFN declaration. If you advised you have a HELP debt he would be withholding per pay in line with tax table with HELP debt. Once you lodge your tax return all your tax credits (income and HELP) are applied to your account.

 

There will be an amount to cover your income along with an amount to cover a compulsory repayment for HELP. If you do not reach the compulsory repayment threshold and have no other ATO or Government debts the extra amount withheld throughout the financial year (FY) will be refunded to you. 

 

Hope this helps.

 

Regards,

Jodie2.