How to pay off HECS/HELP early, factoring in payments already withheld?

Question

Hi, I have an outstanding HECS debt and i'd like to pay it off in one lump sum, however, the ATO only give me the value at close of last financial year (up till July 1st 2009) less the voluntary payments i have made. I can already estimate exactly what has been withheld from my salary payments up till now.

Is it not possible to simply factor in what has been withheld up to this point in time and pay the full remaining amount (with the 10% bonus factored in). I understand i then need to hand in a new witholding declaration form, but telling them i no longer have a HECS debt isn't technically true, as the withheld payments aren't used until EOFY 2010.

Any ideas?

Lime · Accepted Answer

I'd pay off the amount at 1/7/09 now, less the 10% discount. The additional tax withheld will be refunded with your 2010 tax return.

If you want the money back sooner you can lodge a Pay As You Go Variation Short Form, and have your employer take out  less Tax for the rest of the financial year since they took to much out under the assumption that you had a HECS debt.

zunk · Answer

I would phone the ATO 13 28 61 and ask them what the payout balance would be if you paid your HECS debt out on that day.

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How to pay off HECS/HELP early, factoring in payments already withheld?

2 Answers