A Guide to HECS-HELP - Info base

Info Base

Our Info Base is a collection of fact sheets, templates, downloadable forms, lodgement checklists, taxation details and other relevant information. 

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    • INFO BASE

      • Individuals

          Residents: Personal tax rates and thresholds

          These rates apply to individuals who are Australian residents for tax purposes:

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          Non-Residents: Personal tax rates

          Non-Foreign Resident Individual income tax rates

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          Rental Properties

          Purchasing a rental propertyWhen purchasing a financed rental property you may consider:o The interest on the debt is deductible in contrast to the interest on the debt for your main…

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          Motor Vehicle Deductions

          Since 1 July 2015 there are only two methods available for claiming a deduction for motor vehicle expenses:Logbook, orCents per kilometre All motor vehicle claims need to be supported by…

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          Private Health Insurance Rebate 2024

          Private Health Insurance Rebate 2023/24The private health cover rebate changed on 1 July 2023:It is income tested on a single income or family income basis.The…

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          The Medicare Levy, Medicare Levy Surcharge & Private Health Care Rebate 2024

          The Medicare Levy, Medicare Levy Surcharge & Private Health Care Rebate are all items administered via the taxation system that are affected as your level of taxable income changes.Medicare Levy:The…

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          Understanding PAYG Instalments

          What are PAYG Instalments?Pay As You Go (PAYG) instalments is a system for making regular payments towards your expected income tax liability. It generally only applies if you earn business…

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          Investment Properties - things to do, items to keep

          When purchasing a property for investment purposes or changing the status of your main residence to an investment property there are several important steps you should take and documents you…

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          How Cryptocurrency impacts your tax return

          Cryptocurrencies emerged as the first digital currency to be used as an alternative for the…

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          Airbnb Rental Income

          With the increase in people using the sharing economy to supplement their income, for instance with AirBnb and Stayz, it’s helpful to keep in mind the tax implications these sorts…

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          A Guide to HECS-HELP

          What do you need to know about HECS-HELP? The Higher Education Loan Program (HELP, formerly known as HECS) is an Australian government scheme that helps students…

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      • Tax Rates

          Residents: Personal tax rates and thresholds

          These rates apply to individuals who are Australian residents for tax purposes:

          read more »

          Non-Residents: Personal tax rates

          Non-Foreign Resident Individual income tax rates

          read more »

          Weekly, Fortnightly & Monthly Tax Tables

          To calculate the Pay As You Go (PAYG) withholding tax amount for your employees download the weekly, fortnightly or monthly tax tables below, depending on your agreed pay frequency. These schedules incorporate the…

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      • Checklists and Downloads

          The AFYF Document Portal

          You may have noticed access to our old Portal is no longer active. We have been rolling out our new system over the past months, which also includes a…

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          Personal Tax Return Checklist

          All documents for your tax return can now be sent to us via your client portal, using the upload function. Please get in touch if you'd like instructions on how…

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          Company and Partnership Checklist

          All documents for your tax return can now be sent to us via your client portal, using the upload function. Please get in touch…

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          Super fund Checklist

          All documents for your tax return can now be sent to us via your client portal, using the upload function. Please get in touch…

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          Trusts Checklist

          All documents for your tax return can now be sent to us via your client portal, using the upload function. Please get in touch…

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          Tax Return Checklist for Rental Property Income

           Income ·         Rental income …

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          Spreadsheets - Business Income & Expenses

          It's not always necessary to purchase, install, create and update complicated accounting package programs when starting up a business. Sometimes a simple Excel spreadsheet can be more suitable, particularly with sole traders and…

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          Spreadsheet - Motor Vehicle Expenses

          This spreadsheet is a useful tool for monitoring and recording your motor vehicle expenses for your year-end tax return. Keep track of your quarterly expenditure, including lease payments and interest on loans…

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          Template - Motor Vehicle Logbook

          A logbook can help you get the most from your business or work-related motor vehicle use. Download this template so you can keep track of each business or work-related trip…

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          Share Register Spreadsheet

          This spreadsheet is a useful tool for recording your share purchases, sales and transfers. Keep track of share values over time and record the details necessary for capital gain or loss calculations…

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          Procedures for XERO

          If you’re ready to make the switch over to Xero and ready to invite us to your data file now, please download the PDF below for the instructions. 

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      • Superannuation

          The Super Guarantee Charge (SGC)

          The SGC is a penalty charge that applies to employers who don’t pay the minimum amount of super guarantee (SG) for their employees to the correct fund by the…

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          Consolidating your super

          There are numerous benefits to keeping your super in one place.  Apart from only paying one set of fees, you will also be able to keep track of your retirement…

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          Binding Beneficiaries Nominations

          Under superannuation law, the Trustee of your super fund has the discretionary power to decide which of your dependents receives your super if you die before you retire. The law…

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          Audit Requirements

          Below is the list of details needed for the annual audit of your SMSF:A copy…

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      • Estate Planning

          Template - Last Will & Testament

          A Will is a legal document that clearly sets out your wishes for the distribution of your assets after your death. Having a clear, legally valid and up-to-date Will is…

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          Templates - Power of Attorney, Enduring Guardianship, Advanced Care Directive

          There may come a time in your life when you need someone to make imortant decisions for you, whether it is in regards to your health, living situation or your…

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      • Starting a New Business

          10 Most Important Things for New Businesses

          1.  Business PlanBefore you register for an ABN and start trading it is vital to sit down and flesh out the finer points of your business idea: Consider the different…

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          Company & Trust Set Up

          If you decide on a company or trust structure for your new business AFYF can assist you in meeting the various legal, ATO and ASIC documentation necessary for registration and…

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          Registering a Business Name

          When you first get started in a business you should register your business name with ASIC. Registration of a business name lasts for either one or three years, depending on the…

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          Company & Partnership Agreements & Deeds

          When first setting up your partnership, company or trust there may be a requirement to draw up and sign an agreement or deed. These agreements can regulate the arrangements between partners,…

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          Invoicing - What to Include

          Invoices can be hand-written, carbon copies or computer generated from programs like Xero or MYOB, but they all need to include certain details.  For businesses registered for GST invoices need…

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          Family (Discretionary) Trusts - Pros & Cons

          You can use a family (discretionary) trust to facilitate investments, hold assets or as structure to facilitate the operation and ownership of a business. Trusts are often favoured for asset…

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          Understanding ASIC: Your Business's Regulatory Guide

          Australian Securities and Investments Commission (ASIC) is an independent Australian government body that regulates Australian corporations, financial markets, consumer credit, and financial services.  Their…

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          Director ID Application Process

          A Director ID is a unique (15-digit) identifier that a director will keep forever, even if you cease being a director. If you are a director of multiple companies, you…

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      • BAS & GST

          Requirements for BAS

          Below is a list of the detail required to be able to process BAS documentation for lodgement:Bank statements for the full BAS period – Make sure you have all the…

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      • Business Planning

          Business Planning

          A business plan is an essential tool in starting up your business. It allows you to set a clear direction for your business, to communicate planning objectives and strategies to…

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          Reviewing your Small Business

          Reviewing your small business practices and position is an integral part of running a business, particularly as it expands.Below is a checklist put together by the ATO to help you…

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      • Employing People

          Checklist for Employers

          1. Check Fair Work conditions Before you employ someone, you should read through the National Employment Standards as set out by Fair Work to ensure you can meet the necessary requirements.…

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          Job Descriptions with Various Templates

          The job description should be the very first step in the recruitment process. It provides a support for writing job advertisements, specifying necessary qualifications, interviewing candidates, planning job training and…

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          Contracts & Letters of Offer with Example Templates

          Contracts or letters of offer are important aspects when hiring a new employee as they outline the terms and conditions of the job being offered.Try to include as much detail…

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          Letters of Appointment & Example

          A letter of appointment is another aspect of the recruitment process that the employer should complete to confirm the details of employment. It generally only needs to be a short…

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          How Single Touch Payroll impacts Employers & Employees

          Single Touch Payroll (STP) has revolutionised how Australian employers report employee payroll information to the ATO. Introduced in stages, STP’s rollout began in July 2018 for larger employers (20+ employees)…

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      A Guide to HECS-HELP

      What do you need to know about HECS-HELP?

      The Higher Education Loan Program (HELP, formerly known as HECS) is an Australian government scheme that helps students finance their higher education. The scheme operates on an income-contingent repayment model, where graduates repay a percentage of their income once they reach a certain income threshold. This innovative approach has significantly expanded opportunities for Australian students.

      How does HECS-HELP work?

      Study now, pay later: Students can defer their tertiary education fees through the Higher Education Loan Program (HECS-HELP). The loan amount is calculated based on the specific course and the number of subjects undertaken. The government directly remits the tuition fees to the student's educational institution.

      Students do not need to start repaying their HECS-HELP debt until they start earning over the annual income threshold. Repayments for the loan are administered via tax withheld by your employer and/or your annual tax return.

      To be eligible for HECS-HELP you must meet the below requirements

      Indexation of HECS-HELP loans

      Your HECS-HELP debt will increase over time due to indexation. This is similar to interest, and it's applied annually, on 1 June, to the portion of your debt older than 11 months.

      Indexation adjusts your debt to account for rising living costs, ensuring the value of your education remains consistent over time. The indexation rate varies each year.

      In November 2024, the Albanese Government passed legislation to reduce the interest rate on student loans. This change will benefit approximately 3 million Australians with a combined debt of $3 billion.

      The new law caps the indexation rate to the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), ensuring it doesn't exceed wage growth. This change came into effect from 1 June 2023.

      This will result in significant savings for borrowers, with an average reduction of around $1,200 per person. The Australian Tax Office (ATO) will automatically apply these changes to all eligible borrowers.

      If you had a HELP debt on either 1 June 2023 or 1 June 2024, you'll benefit from the new indexation rate.

      Can I make extra or early payments on my HECS-HELP?

      Yes, extra or early payments can be made at any time during the year. It is recommended that these extra payments be made prior to the indexation point of 1 June each year. This will reduce the current balance before the indexation applies. 

      What is my compulsory repayment on my HECS-HELP loan?

      HECS-HELP debt repayments commence when your annual Repayment Income (RI) surpasses the minimum repayment threshold. This threshold is adjusted annually.

      Your repayment income is calculated using the following amounts from your tax return:

       The current repayment threshold and rates are as follows:

      2024-2025 Repayment threshold

      Repayment % rate

      Below $54,435

      Nil

      $54,435 - $62,850

      1.0%

      $62,851 - $66,620

      2.0%

      $66,621 - $70,618

      2.5%

      $70,619 - $74,855

      3.0%

      $74,856 - $79,346

      3.5%

      $79,347 - $84,107

      4.0%

      $84,108 - $89,154

      4.5%

      $89,155 - $94,503

      5.0%

      $94,504 - $100,174

      5.5%

      $100,175 - $106,185

      6.0%

      $106,186 - $112,556

      6.5%

      $112,557 - $119,309

      7.0%

      $119,310 - $126,467

      7.5%

      $126,468 - $134,056

      8.0%

      $134,057 - $142,100

      8.5%

      $142,101 - $150,626

      9.0%

      $150,627 - $159,663

      9.5%

      $159,664 and above

      10.0%

       

      Do I have to pay HECS-HELP if I’m living overseas?

      Even if you're living and working overseas, you may still be required to make HECS-HELP repayments. This applies to both Australian tax residents and non-residents. It's essential to understand your specific circumstances and consult with the ATO for accurate information on your repayment obligations.

      Where can I get the details about my HECS-HELP debt?

      To get specific details about your HECS-HELP debt, you can contact us for the information or refer to the ATO, either via MyGov here or by calling the ATO on 13 28 61.

      Please note: your HECS-HELP loan account will not show the repayments withheld by your employer throughout the year until you lodge your tax return for the relevant tax year.

      The repayment amount for the year is calculated and shown on your annual tax return. If your employer has not withheld enough for your HECS-HELP repayment for the year, you may end up with a tax bill.

      Please make sure you inform all employers via your Tax File Number Declaration Form that you have a HECS-HELP debt when you start employment.

      If you have paid your HECS-HELP debt off throughout the year, but your employer has continued to withhold extra tax for HECS-HELP repayments, then the credit will be applied to your annual tax return. This may result in a refund depending on your overall income and tax position.

       


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