Higher education debts - Tax basics for non-profit organisations

Note: This document forms part of our publication Tax basics for non-profit organisations. To view the full publication, click here.

Higher Education Contribution Scheme (HECS)

There were four schemes offering Commonwealth loans to assist students to pay their higher education fees. On 31 December 2004 these schemes ended. If the Commonwealth lent your employee or payee money under any of these schemes, they will have an accumulated HECS debt.

Higher Education Loan Program (HELP)

From 1 January 2005 a new suite of loans known as the Higher Education Loan Program replaced HECS.

If any of your employees or other payees have an accumulated HECS or HELP debt, they must advise you of this when they complete their Tax file number declaration (NAT 3092). If they acquire a HELP debt after they start working for you, they must advise you of this by completing a Withholding declaration (NAT 3093).

Under the PAYG withholding system, you need to withhold additional amounts from their payments and send these amounts to the Tax Office.

For more information refer to HELP information for payers (NAT 5073). To obtain this publication, see More information.

Last Modified: Monday, 15 October 2007