Paying Hecs Fees before Tax Time

funnysht on 31/05/2021 - 20:58
Last edited 31/05/2021 - 20:59

Hi all
Was hoping some advice,
Have a offer spend 3k and have $500 credit card voucher- hsbc.

Wanted to pay my hecs early- thus instead of getting it automatically paid at tax time- i want to just pay it early- approx 3k.
I went to ATO website and it states I can make a voluntary payment- is this the right method ( i dont want to make a voluntary payment and then at tax time they still deduct the amount they would have anyway.

All i got from researching is:Your HELP balance is renewable. Starting from the 2019-20 income year, any compulsory or voluntary HELP or VSL repayments made will top up a person's HELP balance. These repayments will be applied to a person's HELP balance after they have completed their 2019-20 tax return and been issued with a notice of assessment from the ATO. Repayments can be re-borrowed in the future, up to the current HELP loan limit. For more information on the new combined HELP loan limit and renewable HELP balance visit the combined HELP loan limit page.

Thanks!

Financial

Comments

  • kerfuffle on 31/05/2021 - 21:07
    +1

    Isn’t today the last day you can pay your HECS before it gets indexed tomorrow?

    • AussieDaddy on 31/05/2021 - 21:54

      Yep. Paid off 5K last week for this same reason and it has already been processed. OP should have already done it if he/she was trying to avoid it being indexed on the 1st of June (tomorrow).

    • AustriaBargain on 31/05/2021 - 23:21

      Is it tax time already?

  • Trance N Dance on 31/05/2021 - 21:09

    First check whether government spent is eligible to that spend $3k offer.

    A voluntary payment is in addition to your regular HECS repayments. So you will still have your HECS repayments taken out of your pay as usual on top of your voluntary payment.

    • funnysht on 31/05/2021 - 21:43

      is there a way to change this? so instead of paying it out of pay just pay it upfront but not as a voluntary payment

      • dizzle on 31/05/2021 - 23:18

        No, it will just remove the $3k from your total debt, so fewer payments inthe ong term.

        • tomsco on 01/06/2021 - 08:09

          Just to further this, my understanding is if OP is paying off the balance of their HECS, they will need to notify their employer to stop deducting HECS from regular pay. If it continues to deduct, it will be offset against your tax return (and either go towards your bill, or be refunded).

  • El-Rhi on 31/05/2021 - 21:47
    +3

    ATO payments don’t form part of the eligible spend

    • funnysht on 01/06/2021 - 18:33

      including hecs?

      • El-Rhi on 01/06/2021 - 18:51

        Yes… it’s an ATO payment

  • jimbobaus on 01/06/2021 - 07:48

    Almost every single credit card offer which has a min spend requirement excludes government payments
    HSBC from memory is one of the banks that excludes them

  • funnysht on 06/06/2021 - 12:38

    can i just buy prepaid mastercard with my VISA card through like
    https://auspost.com.au/money-insurance/buy-gift-cards/auspos…

    and that counts towards the spend?

    • Trance N Dance on 07/06/2021 - 03:38

      Careful with AusPost, it can be classified as government spend.

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