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  • When to work out the HELP/SSL/TSL component

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    You will need to calculate the HELP/SSL/TSL component when your employee has given you a Tax file number declaration or Withholding declaration and has:

    • answered yes to the question ‘Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?’
    • not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income
    • claimed the tax-free threshold or is a foreign resident with earnings of one of the following:  
      • $1,074 or more if paid weekly
      • $2,148 or more if paid fortnightly
      • $4,654 or more if paid monthly
      • $13,962 or more if paid quarterly.
       

    If your employee has not claimed the tax-free threshold, the HELP/SSL/TSL component is calculated on earnings of:

    • $724 or more if paid weekly
    • $1,448 or more if paid fortnightly
    • $3,137.33 or more if paid monthly
    • $9,412 or more if paid quarterly.

    You must withhold the HELP/SSL/TSL component from all your employee's earnings, including taxable allowances, bonuses and commissions.

    Examples

    1. Employee has claimed the tax-free threshold and has weekly earnings of $1,095.84.
      HELP/SSL/TSL component = $1,095.99 × 4% = $44.00 rounded to the nearest dollar.
    2. Employee has claimed the tax-free threshold and has fortnightly earnings of $2,355.78.
      Weekly equivalent of $2,355.78 = $1,177.99 ($2,355.78 divided by two, ignoring cents and adding 99 cents).
      Weekly HELP/SSL/TSL component = $1,177.99 × 4% = $47.00 rounded to the nearest dollar.
      Fortnightly HELP/SSL/TSL component = $94.00 ($47.00 × 2).
    3. Employee has claimed the tax-free threshold and has monthly earnings of $5,488.45.
      Weekly equivalent of $5,488.45 = $1,266.99
      ($5,488.45 × 3/13, ignoring cents and adding 99 cents).
      Weekly HELP/SSL/TSL component = $1,266.99 × 4.5% = $57.00 rounded to the nearest dollar.
      Monthly HELP/SSL/TSL component = $247.00 ($57.00 × 13/3, rounded to the nearest dollar).
    End of example
    Last modified: 14 Jun 2017QC 52075