All individuals with an accumulated (HELP) debt earning about $45,000 are now obliged to pay at least 1% of their income to the Australian Taxation Office (ATO).
This is to repay their higher education fees at a sooner time. It is important that individuals fill out their Tax File Number declarations correctly. If one has a HELP debt, they must answer “YES” to questions 11a and 11b . The employer then should take out the correct amount out of the individual’s take-home pay.
Alternatively, those who live and work overseas will not have this tax withheld by its employer and paid to the ATO. Please note that it is one’s responsibility to take away the correct amount of tax to make the repayment within the due date.
*Failure to make the repayment will convert the HELP debt to an income tax debt.
*These debts will accrue at standard interest rates and may cause issues in the future with other government agencies.
Should you wish to learn more about these changes, feel free to reach us at (08) 9316-4500.