The ATO offers an incentive for taxpayers to make additional voluntary repayments on their HELP debts. If you make a payment of $500 or greater the ATO will deduct an additional 5% of the repayment amount off your debt. This could be attractive if you are trying to actively reduce your HELP debt. Please note though you will still be required to make the compulsory repayment when you lodge your tax return at year end if your income is over the threshold which is currently $54,869. In addition the ATO is withdrawing this bonus scheme as of 1 January 2017 so if you wish to take advantage there are only a few months left to do so.
For more information see the following from the ATO.
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.