Once your income exceeds a set threshold repayments for your HECS, HELP or TSL will be automatically calculated by the ATO and included in your tax assessment.
For 2016 the income threshold is $54,126. Income for the purposes of calculating these repayments equals taxable income with any net investment loss added back on.
Your repayment amount is a set percentage of your income which increases according to your level of income eg, if you have earned $54,200 and had an outstanding debt greater than the repayment amount, you would have to make a repayment of 4% x 54,200 = $2,168
A list of the income brackets and the percentage of your income payable can be found at:
Be sure your employer is aware that you have a HECS, HELP, or TSL debt and is withholding the appropriate tax to avoid getting a nasty surprise at tax time.
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.