The proposed legislation to implement the 2013-14 Budget changes to the HECSHELP program has not been passed by the Senate. As a result, the HECSHELP upfront discount and the HELP voluntary repayment bonus will continue for the time being until further announcement.
Until further notice, if you make a voluntary repayment of $500 or more, the bonus of 5% still remains. This bonus is 5% of the value of the payment made, not 5% of the outstanding debt. This bonus aims to encourage individuals to pay off their HECSHELP debt and receive an incentive for paying upfront and will remain for the time being. According to a recent article, the cost of the university loans scheme has ballooned to more than $30 billion with some students owing over $400,000 for their tuition. These figures demonstrate the need for repaying a HECS debt.
Currently, if your income is less than or equal to the minimum repayment threshold ($51, 308 in 2013-14) no compulsory repayment is raised. However, if your income is above the threshold, a compulsory repayment is included on your notice of assessment; an exception to this is due to low family income.
If you require further information on your HECSHELP debt or would like to make a voluntary contribution and receive the bonus, please feel free to get in touch with the team at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via email@example.com.