Removal of 5% HELP discount: from 1 January 2017, the Australian Government will remove the voluntary HELP (previously known as HECS) repayment bonus.
What are the current arrangements?
You can currently make voluntary repayments to the ATO at anytime and for any amount. Voluntary repayments are in addition to the compulsory repayments made through your tax return. Currently and up until the 31st of December if you make a voluntary repayment of $500 or more, you will receive a bonus of 5%. This means your account will be credited with an additional 5 % of the value of your payment. Please note the bonus is 5 % of your payment amount, not 5 % of your outstanding debt.
Ensuring you get the bonus before it disappears:
If you’re intending to make a voluntary repayment, you will need your payment reference number (PRN). This can be found on your account information statements, through your myGov account or by calling the ATO on 13 28 61.
Note: The ATO will be closed from midday 23rd December 2016 until 3rd January. ATO online services will also be unavailable during this time.
What does this mean for you?
- If you need to confirm your PRN, you must do so before the ATO shutdown; and
- Ensure your payment is received by the ATO before the 31st of December 2016 to receive the bonus.
Pro tip
Check when your Financial Institution’s processing deadlines are and make sure that payment is received by the ATO by the 31st December to ensure that you get the 5 % bonus.
Author: Nick Vincent
Email: nick@faj.com.au
