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Help debit additional repayments

Newbie

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Hello,

My question relates to addtional contributions made towards my HELP debit by may employer each time i am paid.

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.

After speaking with my Employer 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 submitted my tax return and a compulsory repayment acount has been calculated and added to my HELP debt balance, but should i also see the additional contributions made my employer on mt HELP Debt balance aswell? 

 

 

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Taxicorn

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@DTagg21 

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year.

Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt.

 

Any surplus or shortfall will then be credit/debit to you.


Did you pay enough tax on your total taxable income?

If not, then part or all of the Help part will be used to pay the balance.

 

1 REPLY 1
Highlighted

Most helpful response

Taxicorn

Replies 0

@DTagg21 

 

The money taken out is not used to immediately repay your debt but held as a credit by the ATO until you lodge your tax return at the end of the financial year.

Once your correct taxable income and repayment income is known any credit that is not needed to pay back any additional tax payable or government debts will then be used to repay the debt.

 

Any surplus or shortfall will then be credit/debit to you.


Did you pay enough tax on your total taxable income?

If not, then part or all of the Help part will be used to pay the balance.