Study Loan Balance Being Credited after Fully Paying Debt

sandman87 on 18/12/2024 - 15:39

I recieved a message form the ATO today saying:

"Check your study loan balance on ATO Online. We have reduced any 2023 and 2024 indexation. For more information search XXXXXXXXX on the ATO Website"

I had paid off the remainder of my loan balance at the beginning of 2024. I had recieved a refund on my 2023/24 tax return for the HECS payments that had been deducted from my pay up until the point I had paid off the debt.

When I log into my student loan balance on the ATO website it says that I had an "Amendment to Indexation" of about $1200 in the credit column. Then a few days later, that same amount went to being "Credit transfered to Income Tax Account Income Tax" of the same amount in the debit column.

Im trying to work out what this means. Will this $1200 be money that I should expect as a refund in my 24/25 tax return, or would I get $1200 not assessed on my income tax, or perhaps something else?

Any ideas? Being able to access that money before Christmas would be nice, but im not holding my breath.

Financial Taxation

Comments

  • jv on 18/12/2024 - 15:59
    -1

    call them and ask.

    • Sye on 18/12/2024 - 16:03
      +9

      I just wait until they call me. They call about once a month saying I have a tax refund and they can process the refund by remotely connecting to my computer.

      • lachhelix on 18/12/2024 - 16:04

        Next time they do can you give them my number too?

    • AngoraFish on 18/12/2024 - 23:00

      You've never tried to call the tax office, have you.

      • jv on 19/12/2024 - 01:16

        I have them on speed dial.

  • Ynk on 18/12/2024 - 15:59
    +8

    It's basically now a $1200 tax credit - So if you normally receive a refund it will be refund + $1200 refunded to you when you do your next return

    • jv on 18/12/2024 - 16:05
      -1

      It's basically now a $1200 tax credit

      How much interest will they pay for holding onto your money for a year?

      • Ynk on 18/12/2024 - 16:06

        For over credits like this currently 4.36%

        https://www.ato.gov.au/tax-rates-and-codes/credit-interest-r…

        • jv on 18/12/2024 - 16:06
          -1

          For over credits like this currently 4.36%

          Do they charge you tax on that?

          • Ynk on 18/12/2024 - 16:08
            +7

            @jv: call them and ask

            • jv on 18/12/2024 - 16:08
              +1

              @Ynk: They don't owe me any money.

          • futureminime on 18/12/2024 - 20:45
            +2

            @jv: As per example in Ynk's link: yes.

            He must include $2.01 as income in his tax return at 'Gross interest' in the income year he receives the interest or it is applied against his tax debt.

            Makes sense, otherwise you could probably just send ATO payments like a term deposit. 4.38% if you're on the top tax bracket is reasonably competitive~ 8.26% simple interest when you get to choose the investment length (although you would get a fixed maturity date every year)

  • lachhelix on 18/12/2024 - 16:02
    +1

    As above - it's a credit on your tax account - when you lodge your taxes next time they'll apply a $1200 credit so you'll either pay less tax (if you owe) or get more of a refund (if you don't)

    • jv on 18/12/2024 - 16:05
      -1

      it's a credit on your tax account

      credit needs to earn interest…

      • lachhelix on 18/12/2024 - 16:06
        +5

        Next time they call me I'll let them know to speak to jv

      • Ynk on 18/12/2024 - 16:06
        +1

        It does, currently 4.36%

  • MistaL on 18/12/2024 - 16:21
    +4

    The credit goes back to the bank account linked to your name

    Click on tax -> accounts -> tax accounts then your income tax 551

    You should be able to see the credits there that says "Credit transferred in from HELP Account HELP"

    Then at the top "EFT refund for Income Tax for the period from xx" and on the left, there is a effective date which is when they are sending the funds to your linked bank account

  • Overclocked91 on 18/12/2024 - 21:23

    I received an $800 credit/refund.

  • Gnilgorf on 19/12/2024 - 09:15

    Can confirm that it goes into the bank account linked to your tax account (aka where your tax return gets refunded to).

    Just received my refund in my bank account this morning, after receiving the sms from ATO regarding my refund yesterday.

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