Otherwise you may end up with a bill at tax time. PAYG tax rates effective 1 July have been used. The actual administration fee that applies to you may vary depending on your employer and may alter the calculation. Estimated annual benefit based on the assumption that an employee does not have any accumulated Financial Supplement debt.
Your benefits will vary depending on your income and personal circumstances. Benefits and savings will vary depending on personal objectives, financial situation and needs. RemServ recommends obtaining independent financial advice before making any financial decisions. Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of the employer. Alternatively, contact your accountant to find out your outstanding amount. Your repayment income is based on the following:.
Voluntary payments can also be made to reduce your HELP loan balance. Subject to legislation, the Australian Government proposes to remove this discount from 1 January If you have a HELP loan you need to advise your employer. Your employer will withhold an additional amount from your wage to cover your compulsory repayments. You can inform your employer by completing a tax file number declaration which can be ordered from the ATO.
The correct box must be selected for the employer to withhold the right amount. If you are not sure of your HELP debt balance and how it will affect your tax return, make an appointment with an accountant at Optima Partners today. Your email address will not be published. Even with inflation, it can denote that many people are unable to get ahead of their debt, including their remaining student loans. Interestingly, Australians in their 30s still carry their student debt. With the indexation rate lower than interest rates, the recommended repayment method is to pay down the biggest debt first.
Let us say that you took out a HELP loan, which will help you pay your tuition fees. Your income immediately tells you that you have to pay back your student loan. Your repayment loan is two per cent based on your income. It means that two per cent of what you earn will go straight to your remaining debt.
A specific amount will be taken out of your salary, along with your tax payments. You should also be aware that your debt will continue to increase every year due to indexation. If you take out another loan to purchase a car or a house, you will have to include your student debt when making repayments.
Even if you work overseas, you still have to repay the HELP debt. Many banks will turn down your loan application because you still have an existing student loan.
In other words, your borrowing capacity is lowered while your risk profile increases. Before accessing a HELP loan, it is your responsibility to understand what it entails. You should also know about your repayment obligations. Changes can take place from time to time. Make sure that you are well aware of the modifications and how they can affect your loan, especially its repayments.
Transitioning to tertiary study is not easy. You should ensure that you have a smooth move by learning which qualifications and courses suit your requirements. You should also find a provider that offers HELP loans to figure out what financial assistance you are eligible for. Think about your career options, as well. The transition can begin by getting a tax file number early. Once you have the number, you should always keep it secure.
Your repayment income for your HELP loan is different from your taxable income. It will depend on various factors, including:. Always check your debt balance. You will usually have to verify your personal details first before you can get the information about your balance.
HECS stays until you repay all your balances. You can pay for the debt through tax, either compulsory or voluntary repayments:. You need first to tell your employer that you have an outstanding HECS debt.
When you sign the tax declaration form before you begin your job, tick the box that confirms your student loan. Your employer will then withhold the tax from your salary automatically. The withheld tax should be able to cover the repayment of your loan. If your employer does withhold additional tax, it should only be based on the payments you receive from your employment.
It is not right if your employer takes your other income, even if it is from the previous or other jobs you may have. This way, you can make top-up payments when you lodge your tax return to renew your HELP balance.
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