HELP schemes
Your payee will have a HELP debt if the government has lent them money under any of the schemes in the following table, or they have a debt from the previous Higher Education Contribution Scheme (HECS).
Name
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for
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provides
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HECS-HELP
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eligible students enrolled in Commonwealth supported places.
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a loan to cover all or part of the student contribution.
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FEE-HELP
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eligible fee-paying students enrolled at an approved higher education provider or Open Universities Australia.
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a loan to cover all or part of tuition fees up to the FEE-HELP lifetime loan limit.
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OS-HELP
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eligible Commonwealth supported students who wish to undertake study overseas toward their Australian higher education award.
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a cash loan to cover expenses such as accommodation and travel.
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VET FEE-HELP
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eligible students undertaking vocational education and training (VET) accredited diploma, advanced diploma, graduate diploma and graduate certificate courses with an approved VET provider.
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a loan to cover all or part of tuition fees up to the FEE-HELP lifetime limit.
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SA-HELP
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eligible students enrolled in a course of study with a higher education provider.
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a loan to cover the fee charged by higher education providers for student services and amenities of a non-academic nature, such as, sporting activities, financial, employment and career advice, child care and food services.
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Payees with a HELP debt must have additional amounts withheld from their payments under the PAYG withholding system once their payments are above the minimum repayment threshold for an income year and have:
- advised you of an accumulated HELP debt
- not completed a Medicare levy variation declaration (NAT 0929), where they indicated that due to low family income, they are either not required to pay the Medicare levy or pay a reduced amount
- claimed the tax-free threshold and earn $944 or more per week in the 2012-13 income year, or the equivalent fortnightly or monthly amount, or
- not claimed the tax-free threshold and earn $594 or more per week in the 2012-13 income year, or the equivalent fortnightly or monthly amount.
A new payee must complete a Tax file number declaration (NAT 3092) and answer 'YES' to the question 'Do you have an accumulated Higher Education Loan Program (HELP) debt?'.
An existing payee who acquires a HELP debt must complete a Withholding declaration (NAT 3093) and answer 'YES' to the question 'Do you have an accumulated Higher Education Loan Program (HELP) debt?'.
The additional amounts withheld for HELP must be reported in the total amounts withheld on your activity statements that you send us and on the payee's payment summary as 'total tax withheld'.
The additional amounts withheld are an estimate of the amounts required to cover the payee's compulsory repayment that may be included on their notice of assessment for the income year. These amounts are not immediately credited to the payee's HELP account throughout the year.
The compulsory repayment will not be calculated until the payee's tax return for that year is processed. If they had excess amounts withheld during the year, and have no other outstanding debts, we will refund the excess to them.
Some circumstances that can affect the additional amounts withheld for repayment of HELP debts
- Payees who have paid off their debt - Payees who pay off their debt, either with a voluntary or compulsory repayment, should complete a new Withholding declaration (NAT 3093) and answer 'NO' to the question 'Do you have an accumulated Higher Education Loan Program (HELP) debt?'. When they have done this, you should stop withholding additional amounts.
- Payees expecting to pay off their debt - Payees who have had enough additional amounts withheld to pay off their debt part way through the income year should complete a new Withholding declaration and answer 'NO' to the question 'Do you have an accumulated Higher Education Loan Program (HELP) debt?'. When they have done this, you should stop withholding additional amounts.
- Payees who expect to have their compulsory repayment covered part way through the year - Payees may have had enough additional amounts withheld part way through the income year to cover their next compulsory repayment. However, they may still have a debt in the following income year. They can complete a PAYG withholding variation short application (NAT 5425) and send it to us. We will then advise you to stop withholding additional amounts for the rest of the income year.
Example
Jason has a debt of $5,000 and estimates that his compulsory repayment for the 2012-13 year will be $1,983. Jason has additional amounts withheld from his payments but later in the year realises that the additional amounts withheld will reach $1,983 by March 2013. In February 2013, Jason completes a PAYG withholding variation short application (NAT 5425) and sends it to us.
We then advise Jason's employer to stop withholding additional amounts for the rest of the 2012-13 income year.
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- No compulsory repayment because of low family income - Payees who have a debt and, due to low family income, are entitled to a reduction of the Medicare levy or do not have to pay the Medicare levy, are not required to make a compulsory repayment for that income year. Those payees who have additional amounts withheld from their payments must complete a Medicare levy variation declaration (NAT 0929) and submit it to you. You must then stop withholding additional amounts.
- Reportable fringe benefits - Amounts withheld from your payee's payments do not cover reportable fringe benefits amounts. If your payee wants you to withhold additional amounts to cover the increased compulsory repayment due to reportable fringe benefits amounts, they can complete the Withholding declaration - upwards variation and submit it to you.
Last Modified: Monday, 2 July 2012