Comments for NoMoney

Comment on Should you repay your HELP-HECS loan or not? by Scott

Scott — Tue, 28 Feb 2012 11:07:41 +0000

Hi Katrina

If you have a HECS/HELP debt and move abroad then the ATO will advise customs, who will then stop you the next time you enter the country.

no – just kidding.

I believe the position is the same as if earned under the threshold, that you don’t have to pay it back. If you permanently move overseas the debt would just sit there just in case you ever came back (and cease if you passed away).

But note that Australian tax resident pay tax on worldwide income – so if you worked overseas for a year (or maybe 2) you could still be a ‘Australian tax resident’ and need to include your worldwide income and then have to pay a HELP repayment.

But it appears an Australian foreign resident (i.e. someone who emigrated overseas) would be able to leave without paying back the debt.
Scott

Comment on Should you repay your HELP-HECS loan or not? by Scott

Scott — Tue, 28 Feb 2012 10:59:25 +0000

Hi Elias

Compulsory HELP payments are not before tax payments.

Your employer takes extra from your salary by taking extra PAYG withholding to help cover your HELP repayment.

So employee earning $80k no HELP debt – employer withholds say $18,750 (to cover tax and medicare)

If you had a help debt your employer would withhold $18,750 tax PLUS an extra 7% (per ATO’s HELP thresholds 2012) so an extra $5,600.

You are still taxed on the full $80,000.

But yes – given the 10% prior to 1 January 2012, and now the 5% from 1 January 2012 voluntary payment – you might be better investing elsewhere.

Scott

Comment on Should you repay your HELP-HECS loan or not? by Katrina

Katrina — Wed, 18 Jan 2012 11:59:46 +0000

What is the position if an individual has a HECS debt but then moves abroad for several years? Do you have to repay whilst abroad? Can the ATO chase for funds if you have no Australian income? What happens to your debt if you permanently emmigrate? Would value your wisdom. Thanks

Comment on Should you repay your HELP-HECS loan or not? by Elias

Elias — Wed, 12 Oct 2011 03:37:16 +0000

My understanding is that voluntary repayments are not tax deductable.
Compulsory payments are made before tax, so a lot of what you pay to the debt is money you would have otherwise paid in tax. If your earning up to $80K per annum, 30% of y our debt would have otherwise been paid in tax
If you owe $5000, to pay that off with your compulsory contributions you will pay $5000 out of your Gross Salary, this means that $3500 is what actually comes out of your pocket and the other $1500 would have been taxed at 30% (which you wouldn’t have seen anyway).
Whereas if you paid $4500 after tax ($5000 – 10%), you would have paid an extra $1000 out of your pocket. Which works out that it’s cost you over 20% more.
Any accountants out there can check the sanity of my example please.
In my opinion, it’s far better to make only the compulsory minimum tax free payments and invest your money elsewhere.

Comment on Should you repay your HELP-HECS loan or not? by Scott

Scott — Wed, 17 Aug 2011 03:40:25 +0000

Thanks Dash

Agree that it is correct to tell the ATO you have a HELP debt when you complete your TFN declaration form (when you get a new job).

I more meant for people who had an existing job (say through high school) who had already completed the TFN declaration form. But I agree that the correct thing to do is to advise your employer (who might start taking extra tax out).

Yes – I was aware the voluntary repayment has dropped to 5% – just hadn’t had time to write about it!!
Cheers
Scott

Comment on Should you repay your HELP-HECS loan or not? by dash

dash — Mon, 08 Aug 2011 01:18:14 +0000

Just got off the phone with the ATO, they said telling your employer that you don’t have a HELP debt means you could be penalized/fined. Especially if you are holding off mandatory repayments to make a bulk voluntary repayment later. Thoughts?

Thanks for the article BTW.

And FYI the 10% bonus drops to 5% after 1 January 2012.

Comment on What can I claim for tax? Office Workers by Scott

Scott — Tue, 12 Jul 2011 11:31:39 +0000

Hi Johnny
I try not to give specific advice – but one-on-one I’d ask about what sort of job you do & whether the CA subscription has a link to the work you do.
Scott

Comment on Tax tips for under 30s – Retail, hospitality, office workers and tradesmen by What can I claim for tax? Office Workers | NoMoney

What can I claim for tax? Office Workers | NoMoney — Tue, 12 Jul 2011 11:10:20 +0000

[...] July 2011 update -Also – check out my latest tips for those working in retail, hospitality, office workers and tradies at: http://www.nomoney.com.au/taxtips [...]

Comment on Buying a new car – for the cheapest price by Scott

Scott — Tue, 12 Jul 2011 10:59:15 +0000

Hi Noel
sorry for the delay – I manually approve comments so I don’t get any spam on the site (you wouldn’t believe the amount of spam sites like this get).
Scott

Comment on What can I claim for tax? Office Workers by Pip

Pip — Tue, 12 Jul 2011 05:52:43 +0000

I am doing a Cert IV Business Administration course that the Government has subsidized thru work.
As this is a correspondence online course, i do 99% of it from home (on my own time as i am too busy thru work hours) and have had to buy new Microsoft Office Software to be able to do a majority of it.
What can i claim? Can i also claim internet usage