Do you have an opportunity to reduce your HELP/HECS debt?
Time to take advantage of 10% discount on voluntary HELP Repayments is running out
Many who attended university over recent years have a HELP loan (formerly known as HECS). One thing of which you might not be aware of is that from the 1st January 2012 the Government is reducing the discount bonus on HELP Voluntary repayments from 10% to 5%.
Many who attended university over recent years have a HELP loan (formerly known as HECS). One thing of which you might not be aware of is that from the 1st January 2012 the Government is reducing the discount bonus on HELP Voluntary repayments from 10% to 5%.
The bonus is available for voluntary repayments where the payment is either over $500 or if the repayment pays off the remainder of your debt. The 10% bonus works like this;
If you make a $1,500 voluntary payment before the 23rd of December your bonus will be $1,650, as the government will add on an extra $150 (10%) to your repayment.
However even though voluntary repayments reduce your debt immediately, you may still be required to make a compulsory repayment through your salary if you have a remaining debt, or if your repayment income is above the minimum compulsory repayment threshold.
So if you have any spare cash before Christmas it is something worth considering.
Besides checking the ATO website or calling them on 13 28 61, contact the team at Hattam McCarthy Reeves and we’ll help you understand your position and potential savings.
Bryden Crabb
If you make a $1,500 voluntary payment before the 23rd of December your bonus will be $1,650, as the government will add on an extra $150 (10%) to your repayment.
However even though voluntary repayments reduce your debt immediately, you may still be required to make a compulsory repayment through your salary if you have a remaining debt, or if your repayment income is above the minimum compulsory repayment threshold.
So if you have any spare cash before Christmas it is something worth considering.
Besides checking the ATO website or calling them on 13 28 61, contact the team at Hattam McCarthy Reeves and we’ll help you understand your position and potential savings.
Bryden Crabb
Hattam McCarthy Reeves
Chartered Accountants & Business Advisers
Chartered Accountants & Business Advisers
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