1. PAYG Deductions Other considerations
Help
Tax Offsets
Allowances
ATO Advised Rates
Non Residents

2. Application of HELP to fees
All students who are offered Commonwealth-supported places or Fee-paying places
Fees calculated as at census date each semester:
Not all Uni’s the same census dates
Semester ONE – mid to late March
Semester TWO – mid to late August
The packages of assistance:
HECS-HELP for supported students
FEE-HELP for fee-paying students
OS-HELP for overseas Australian students
VET-FEE HELP for certain VET programs

3. Methods of payment Method 1 Method 2 Method 3
Pay up-front with a 10% discount
Method 2
Defer the debt – Must provide a TFN
Total income includes negative gearing losses and reportable fringe benefits. No interest but debt indexed when outstanding for more than 11 months
Method 3
Make a voluntary payment
If over $500 then a 5% bonus amount is added to the repayment.

4. PAYG - HELP Repayment – calculated at income tax time
HELP Repayment Income x Rate(Refer Tables)
Help Repayment Income includes
Taxable income
Reportable Fringe Benefits
Exempt Foreign Income
Add back Net investment loss
Reportable Super contributions

5. PAYG HELP
Employer Obligations
If employee has answered ‘yes’ to question 11 on TFN employer must withhold additional $ based on wages.
Use HELP weekly tax tables to determine how much p389 text

6. PAYG Cont Tax Offsets Directly reduce the amount of tax to be paid.
Generally 3 types
Provide tax relief for personal circumstances (senior Aust, people living in remote areas)
Give credit for an amount effectively already paid (credits on franked dividends)
Provide an incentive (private health insurance and mature age workers)

7. PAYG & Tax Offsets Employers obligations
Reduce PAYG withholding when employee answers ‘yes’ to question 9 and/or 10 on TFN declaration and supply a withholding declaration.
Use ready reckoner on Weekly tax tables to convert full year reduction to weekly deduction

8. PAYG Allowances – Do we withhold?
Receiving an allowance doesn’t automatically qualify you for a deduction. Must still meet the basic rules to make a claim
Generally –Yes Withholding from allowances | Australian Taxation Office

9. PAYG cont ATO Advised Rate Why a different rate?
Must receive advise directly from the ATO
Will only be for a set period – must then revert to normal