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HELP (HECS) compulsory repayment

Discussion in 'Accounting, Tax & Legal' started by kelderzy, 4th Oct, 2009.

  1. kelderzy

    kelderzy New Member

    Joined:
    4th Oct, 2009
    Posts:
    2
    Location:
    QLD
    When completing my tax return via eTAX, it has calculated my compulsory HELP repayment to be approx $4000. Does this take into account the fortnightly amount that has automatically come out of my pay, each pay cycle? Why do I owe so much at tax time when my pay slips show that I've been paying a small amount of HECS each fortnight?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
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    Location:
    Sydney, Australia
    I was just wondering whether it is simply quoting your total annual repayment due - and when the ATO finally calculates what tax you need to pay, they will take your existing payments into account? I don't actually know - is just a guess (I've not looked at eTax in many years).
     
  3. jrc

    jrc Active Member

    Joined:
    3rd May, 2007
    Posts:
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    Location:
    Western, NSW
    Your tax assessment will look something like:

    Tax payable on $Y $A DR
    Medicare levy $B DR
    HELP $C DR
    Credit for PAYG $D CR
    Refund/Balance payable $E

    The ATO adds up everything that you owe and credits any PAYG you have paid. It dies not break down the money withheld by your employer into tax instalments and HELP instalments. If your HELP payment is going to be around $4K, then your taxable income will be around $60K.

    I'm assuming you are being taxed for a full year and that you have not entered the workforce during the financial year.
     
  4. kelderzy

    kelderzy New Member

    Joined:
    4th Oct, 2009
    Posts:
    2
    Location:
    QLD
    thanks

    Thanks for that. The Etax estimate does not seem to calculate the PAYG Credit part of it though. is that correct?

    So my HELP repayments (with-held by my employer) and any PAYG tax instalments I've made, should be deducted from the etax estimate once the ATO receives my tax return?