| Higher Education Contribution Scheme and Income Tax |
| Changes in government funding of universities has changed both the entitlements and the repayment arrangements. |
The higher education providers can set their own fees and there has been a re badging of many of the entitlements (now have HELP loans). HECS places are now called Commonwealth supported places, allowances have different labels and loans to undertake overseas study, are now available.
The discount for upfront payment of the student contribution has reduced to 20%, whilst the bonus for voluntary HECS or HELP repayments, is now only 10%.
Upon lodgement of the tax return, the minimum repayment threshold for compulsory repayment of old HECS debts or new HELP debts has increased to $35,000 for the 2004/05 financial year.
A student with a HECS/HELP debt, who earns over $45,000 p.a., should consider using the 10% discount for a voluntary repayment, if during the same tax year a compulsory repayment will be required (which of course does not include the 10% discount).
10th-June-2005 |
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