How to Defer HELP Repayment

MiaSanMia on 01/06/2017 - 12:09
Last edited 01/06/2017 - 13:44

Long story short, I'm owing $5000 in HELP debt, office worker, 2016/17 taxable income will be just over $60,000, no salary sacrifice to super. Is there any way that I can lower the repayment income down below 2016/17 threshold $54,869? An obvious solution is a nice deduction of $5000 - but need to be more specific and realistic on what to spend on in the next 30 days!
P/S: I prefer to pay it next year or two when getting some extra income, it has a been a tough year for me in terms of finance :(

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Comments

  • BensonP on 01/06/2017 - 12:12
    +1

    $5000 in 30 days is going to be hard. Any large items will be depreciated over 3 years.

    Claiming 5000kms or work travel, will lower your taxable income by $3750 for a 6 cylinder (Less for a 4 cylinder)

    Surely your HELP repayment won't be that much?

    Edit: So your repayment is $2400 according to the ATO calculater. If you elected to have the HELP repayments deducted from your wage/salary, you shouldn't have to pay any more.

    • [Deactivated] on 01/06/2017 - 12:40

      If you elected to have the HELP repayments deducted from your wage/salary

      On the other hand, I think the OP will get a refund if he can reduce his taxable income.

    • plmko on 01/06/2017 - 14:12

      No difference between size of car since 2015. Will be $3300, not $3750.

  • PrimalNuke on 01/06/2017 - 12:24
    +2

    Feeling generous? You could donate the 5k to a charity.

    • psyren89 on 01/06/2017 - 12:38

      That's about the only thing I could think of.

    • sparkles on 01/06/2017 - 12:44
      +11

      Paying $5k to charity or spending it for the sake of it to save $2.4k reduction of your debt is counter-productive. Just pay the debt, the sooner it's gone the better. In a couple of years it will be gone entirely. You can't avoid it forever. It sucks, but so does paying back any debt. All in all, your debt is pretty low and you aren't going to be paying it off for decades.

    • MiaSanMia on 01/06/2017 - 13:07

      My family fund? Got kids to raise too

  • k-rokfm on 01/06/2017 - 12:32
    +1

    Yeah why? Youll pay more in avoiding the tax than in the amount that you will owe. And by the end of next year (assuming similar income) you will owe basically nothing.

  • Malarkey on 01/06/2017 - 12:39
    +2

    HELP repayments are calculated on your total income, even if you salary sacrafice under the threshold you'll still have to pay it.

    • MiaSanMia on 01/06/2017 - 13:25

      So the only way is deduction? Sad face :(

      • Malarkey on 01/06/2017 - 15:56

        Deductions won't help.

  • [Deactivated] on 01/06/2017 - 12:41

    Salary packaging a car could help … it can be done, so it doesn't show up as a taxable benefit.

    But doing it in 30 days might be difficult.

  • Baysew on 01/06/2017 - 12:55

    Why not ask the question in AMA - Round Two - Tax and Tax Return Questions - Ask Me Anthing - GO!

    • MiaSanMia on 01/06/2017 - 13:09

      Good idea! I saw this before but Comments box was closed at that time.

  • djsweet on 01/06/2017 - 13:20
    +3

    Your answer is above, but I'll say it again.
    HELP repayments are not calculated based on taxable income. They are calculated on total income.
    Won't matter what you do, there is no way out of it.

    • MiaSanMia on 01/06/2017 - 13:25

      So the only way is deduction? Sad face :(

      • djsweet on 01/06/2017 - 13:30
        +4

        No, the only way is to earn less money.

        • MiaSanMia on 01/06/2017 - 13:32
          -3

          too bad so sad, too late now, tell me earlier! By the way $60k is not much with a growing household you know :(

        • bob smith on 01/06/2017 - 14:12
          +2

          @MiaSanMia:

          Get a good job that pays good money - Joe Hockey

        • jjjaar on 01/06/2017 - 14:39
          +3

          @MiaSanMia: don't grow a household if you have debts to repay?

        • Baysew on 01/06/2017 - 14:43
          +1

          @jjjaar: Usually there is quite a strict "No Returns, No Refund" policy in place.

        • MiaSanMia on 01/06/2017 - 16:13

          @bob smith: Need to repay the debt, finish studying while growing own family before getting a hand on 'a good job that pays good money'. By the way what is it?

        • MiaSanMia on 01/06/2017 - 16:17

          @jjjaar: Majority of households in this country may not agree with you

        • Beanvee on 02/06/2017 - 13:24

          @MiaSanMia: Majority of households must be stretched thin then, 60k is just enough for me to live alone comfortably. I couldn't imagine supporting others.

    • billy3000 on 01/06/2017 - 20:19

      This is the truth!

    • CheapskateQueen on 01/06/2017 - 23:32
      +1

      It's actually calculated on Adjustable Income. Your deductions count to determine your Taxable Income but then certain things (like net investment losses) are added back to determine your adjustable income.

      That being said $5000 in senseless deductions are hard to achieve and counter productive in this situation.

  • djkelly69 on 01/06/2017 - 15:39

    Can you take leave without pay for the last month of the financial year?? That should get you pretty close to a $5k reduction in income.

    • CheapskateQueen on 01/06/2017 - 23:35

      Actually depending on how flexible your employer is, you could ask them to defer payment of a paycheck until the first pay after June 30.

    • sparkles on 02/06/2017 - 03:46

      You have to be UNDER. Being close doesn't count. As soon as you are $1 over the minimum percentage payments kick in.

      • CheapskateQueen on 02/06/2017 - 19:49

        Well yes but then they'll only need say 3000 in deductions instead of 5k

  • [Deactivated] on 01/06/2017 - 15:40
    +1

    Australia Post CEO's method of 'donating' it to your brother's museum.

  • Sage on 01/06/2017 - 15:44

    Employer should have been withholding tax for the debt, when you tell them your TFN you get to tell them you have a HELP debt.

    The compulsory payment for earning 60 grand is $2,400.

    They have deferrals and payment plans if you can't pay debts.

  • tsunamisurfer on 01/06/2017 - 17:47

    OP….you Agreed to the terms of HELP when you happily took the money to pay for your education.

    Some of those terms funnily enough contain repaying back this loan from taxpayers.

    You are earning above that threshold, its kinda time you repaid that loan.

    I put it to you that if you are on 60k and have a growing family, you will derive more from the welfare system that you pay in HELP.

    • MiaSanMia on 01/06/2017 - 19:32

      What do you mean by "you will derive more from the welfare system that you pay in HELP"?

      • sparkles on 02/06/2017 - 03:39
        +1

        He might mean the family tax benefit, and childcare rebates, and all those baby bonuses people were happy to pocket etc etc etc. All the stuff families get that no one else does. Everyone else gets a kick in the teeth (and being dental can't even get that fixed on Medicare).

        • MiaSanMia on 02/06/2017 - 09:02
          -5

          I've been on the same boat for years before getting to this "family" stage, got the baby bonus which is significantly less than it used to be, getting f&%%ck all of FBT Part A & B, hardly ever go to GP, wish I can stay home & live on Social Security benefit so that i dont have to receive childcare rebate lol, i dont think I derive much from taxpayers contribution!

        • Qkumber on 02/06/2017 - 10:15

          @MiaSanMia: It's actually more than it used to be. 18 weeks of minimum wage is $12,106.80. Childcare rebate is $7,500 per child per year

  • Limitless on 02/06/2017 - 09:50
    +1

    Help i bought a house, motorbike and had a kid but don't want to pay back my HELP debt….

  • pebee47 on 02/06/2017 - 10:06
    +4

    So the options are: Screw around spending $5K on some tax deductable things you don't really need so you can put off the inevitable $5K HELP debt, OR, pay the $5K HELP debt and be free of it forever. No brainer really.

  • [Deactivated] on 02/06/2017 - 15:38

    Nothing annoys me more than people trying to avoid paying their HELP/HECS debt.

    • MiaSanMia on 02/06/2017 - 16:31

      Mind you that Avoiding vs Deferring is completely different.

      • Limitless on 02/06/2017 - 23:53

        What do you gain by deferring if you need to spend $5k to defer payment? As mentioned above you are spending 5k either way….

  • [Deactivated] on 02/06/2017 - 16:57

    Man up and pay it

  • ukulele on 06/06/2017 - 09:11

    if you are payable, why don't you get a tax agent to lodge your tax in May 18, you will be payable in June 18. Just better save throughout the year.

  • marka on 06/06/2017 - 21:29

    You can apply to defer HELP repayments due to financial hardship or other special circumstances.

    There are options to complete fully or partially defer the payment

    https://www.ato.gov.au/uploadedFiles/Content/CAS/downloads/D…

    • techboy on 07/06/2017 - 09:20

      That is a great help. However most people when they fill it in would struggle to get deferment.
      I have seen it before, but only when unemployed and badly in debt.

  • MiaSanMia on 15/06/2017 - 12:15
    -1

    How about enrolling on some higher education studies before 30/06 and claim them as tax deduction?

    • Baysew on 15/06/2017 - 12:25

      If you only have to pay $2400 repayment of HELP debt, there is no point trying to find $5000 in deductions.

      • MiaSanMia on 15/06/2017 - 12:42
        -1

        My cashflow this year is not great therefore I'd like to defer repayment until next year.

        • Baysew on 15/06/2017 - 13:59

          My cashflow this year is not great

          So how are you going to find $5k right now (before 30 June)

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