Removal of the HECS-HELP discount and voluntary repayment bonus
From 1 January 2017, the Australian Government will remove the upfront HECS-HELP discount of 10% for eligible students that pay their student contributions upfront and remove the voluntary HELP repayment bonus of 5%. The removal of the upfront discount only affects students who can afford to pay upfront, but the bonus for voluntary repayments impacts all past and present students who want to minimise their HELP debt.
Currently, people who have a HELP debt and make a voluntary repayment of $500 or more towards that debt currently receive a bonus of 5%. The amount of the bonus is an additional credit against an individual’s outstanding HELP debt. It is an amount never recovered by the Government.
If you wish to take advantage of the 5% bonus of voluntary repayment of your HELP debt, you need to make sure that your payment reaches the ATO by the 31st December 2016. It is important to note that the ATO will be closed from midday 23 December 2016 until 3 January 2017, meaning that their systems may be non-operational during this time.
We can help you confirm your current HELP debt, confirm your ‘payout’ amount if you wish to make a lump sum payment to repay your debt in full and provide instructions on how to make the voluntary HELP payment.
If you have any questions or enquires, please contact
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au
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