When do you have to start paying back that HELP debt?
The following rates and compulsory repayment thresholds apply for the 2009-10 financial year:
| HELP repayment income (HRI*) | Repayment rate |
| Below $43,150 | Nil |
| $43,151–$48,066 | 4% of HRI |
| $48,067–$52,980 | 4.5% of HRI |
| $52,981–$55,764 | 5% of HRI |
| $55,765–$59,943 | 5.5% of HRI |
| $59,944–$64,919 | 6% of HRI |
| $64,920–$68,336 | 6.5% of HRI |
| $68,337–$75,203 | 7% of HRI |
| $75,204–$80,136 | 7.5% of HRI |
| $80,137 and above | 8% of HRI |
* HELP Repayment Income:
The way the Tax Office define HELP repayment income has changed. From 1 July 2009 repayment income is calculated using your taxable income, total net investment loss (including rental losses), reportable fringe benefits amounts, reportable super contributions and any exempt foreign employment income.
It might be worth checking to see if you’d qualify for the HECS-HELP Benefit (I’m linking to last years page here as I haven’t had a chance to check the maximun entitlements for 2010 yet). If it’s something that might benefit you, the best time to lodge your application is BEFORE you submit your 2009-10 tax return.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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