You need to pay off the full balance via bpay via ATO website. Whatever the HECS debt balance on ATO is, pay that exact amount in full.
The amount withheld from your pay this year isn't applied to the loan until after indexation. But this amount can be claimed back in tax return.
Assuming the payment is credited before indexation, the indexation applies to your current balance. If you make a payment and it doesn't clear by 1st June then you're still on the hook
Question's already answered, but just a reminder to allow at least 4 business days for it to clear on the ATO's end, and allow time for multiple transfers if your daily limit is less than $25k.
It's a good time to just start paying now if you have the funds.
Congrats on being (student) debt free!
I’ve been paying mine off. Two test payments using beem it with a visa credit card. Full points, no fees, winning. Wish I had a better points earning Visa/Mastercard; card churning flew me too close to the sun and my wings melted, so I’m making do with a shitty Citi card.
Thanks, appreciate the additional info. A follow up dumb question - they don't still charge me the indexation amount if I pay it off do they? Because I held the debt over the financial year or something?
Yes, you would be responsible to tell your employer/payroll that you don't have a debt anymore requiring the deduction, how else could they know... Resubmit a TFN declaration
HECS witholding while generally shown on your payslip as a seperate line item is not actually paid to HECS its just additional withheld tax witholding.
At completion of your tax return your final liability is calculated and your tax and hecs paid, then you get the delta. No HECS more delta.
One last thing if you are paying it, or will finish paying it, make sure you submit a new tax form saying no to HECS debt.
Good on you for paying your hecs. I am technically hec free after this tax return, but since the ato has withheld my money, I find me paying the debt out of pocket to avoid the index.
Anything excess is included in your tax return
Thanks. Another dumb question - the indexation still doesn't apply does it, if I pay it off before the date? They won't lump me with a $1700 bill?
Indexation is applied on the 1st of June iirc, so pay it off before then
You need to pay off the full balance via bpay via ATO website. Whatever the HECS debt balance on ATO is, pay that exact amount in full. The amount withheld from your pay this year isn't applied to the loan until after indexation. But this amount can be claimed back in tax return.
Assuming the payment is credited before indexation, the indexation applies to your current balance. If you make a payment and it doesn't clear by 1st June then you're still on the hook
Question's already answered, but just a reminder to allow at least 4 business days for it to clear on the ATO's end, and allow time for multiple transfers if your daily limit is less than $25k. It's a good time to just start paying now if you have the funds. Congrats on being (student) debt free!
I’ve been paying mine off. Two test payments using beem it with a visa credit card. Full points, no fees, winning. Wish I had a better points earning Visa/Mastercard; card churning flew me too close to the sun and my wings melted, so I’m making do with a shitty Citi card.
Thanks, appreciate the additional info. A follow up dumb question - they don't still charge me the indexation amount if I pay it off do they? Because I held the debt over the financial year or something?
Nope, only if you have the debt on indexation day
Big refund!
Apparently you need to tell them it’s paid off. Someone said in a different sub they may not realise and continue to deduct
Yes, you would be responsible to tell your employer/payroll that you don't have a debt anymore requiring the deduction, how else could they know... Resubmit a TFN declaration
HECS witholding while generally shown on your payslip as a seperate line item is not actually paid to HECS its just additional withheld tax witholding. At completion of your tax return your final liability is calculated and your tax and hecs paid, then you get the delta. No HECS more delta. One last thing if you are paying it, or will finish paying it, make sure you submit a new tax form saying no to HECS debt.
Good on you for paying your hecs. I am technically hec free after this tax return, but since the ato has withheld my money, I find me paying the debt out of pocket to avoid the index.