HECS/Income Question (1 Viewer)

[JoyDivision]

Hi, I have a question...

Im deferring next year and working full time in a bank. I was planning on taking HECS to do my course, but i'll be earning slightly more than $30,000 gross next year. I think this means I am above the income threshold, so what does this mean? Does this mean I have to start paying back HECS as soon as I get into university?

 

[ur_inner_child]

I don't think it matters the year before uni, I don't think.

Because that would be bizarre.

I mean, perhaps you decided not to go to uni after all?

You'd be paying for jack?

 

[JoyDivision]

Yeah I know, its really got me wierded out. The only thing im thinking is that because Im classified as independent because ive earned over $16,000 in a year, theyre going to make me start paying back HECS as soon as I start my course because my income will be on record as being above the threshold.

This probably wont become a problem until I actually start Uni, but im getting kinda worried about it now.

 

[ur_inner_child]

can you earn that much money during uni??? I have a feeling you wouldn't because i don't think its the money you have NOW, its the money that you WILL get during and after uni....

Call centrelink...wait is that the right department?... don't think so....

 

[JoyDivision]

If I worked 26 hours a week while I was at Uni, I'd get paid $30,000 .....Arggh this is seriously going to stress me out.

Thanks heaps for your help, i'll start making calls and hopefully start getting some good news Tommorrow.

Cheery.

 

[Cyph]

you will only pay back your HECS if you earn over a certain amount and have a HECS debt.

A small percentage will come out of your pay.

You should be right as when you fill out that tax form (tax decleration??? I forget what it's called), you'll tick that you don't have a HECS debt.

 

[LeftrightOut]

If I worked 26 hours a week while I was at Uni, I'd get paid $30,000 .....Arggh this is seriously going to stress me out.

Thanks heaps for your help, i'll start making calls and hopefully start getting some good news Tommorrow.

Cheery.

If you worked 26 hours a week while at uni I would hate to see your marks at the end of semester.

Don't let it stress you out, you can always take a week off if you are so seriously concerned about *just* going over a limit.

Also the government is increasing the thresholds every year.

 

[braindrainedAsh]

I was working 32 hours a week while doing full time uni and I did fine this semester.....

26 is quite managable... in fact thats about the amount of hours a week I like to work while at uni. I think it depends on what degree you are doing.

But to answer your question, you won't have to pay it upfront... just defer it and then you should pay a bit extra tax to cover in case they take some out in your tax. Ask the ATO about it.

 

[LeftrightOut]

I was working 32 hours a week while doing full time uni and I did fine this semester.....

26 is quite managable... in fact thats about the amount of hours a week I like to work while at uni. I think it depends on what degree you are doing.

Yes it does, I would say most Arts subjects have less face to face class time requirements than say engineering or computer science or commerce or business subjects

 

[peteski01]

i did 38 hours a week.. marks were alright. it's all about time management

 

[LeftrightOut]

Nah, its not like they check your income or anything when u fill out ur HECS form.

No but the ATO does when tax time comes around and if you haven't paid it in increments (by ticking the HECS box on employment) you will get hit with the $X amount after your return has been lodged. That is if you are above the threshold and have a HECS debt in any given financial year.

I don't know why
1) People are so worried about it, you will only start paying it back if you earn more than $35k a year (04/05) and that is increasing every year. It used to be much lower but even then you are only paying back out a small portion of your income, you'll probably just have to go get drunk less, or have less holidays, or not buy as many expensive clothes, it won't kill you.
2) People are worried about paying back their share. You will only be paying back 4% at the lowest rate which if you earn $36k a year (05/06) is like $1440. still a nice bit of dough but it will not send you bust when you earn that much. Under that amount you will pay NOTHING, so all the people earning below $35 relax and stop worrying if you are getting ready for uni next year.
3) People don't go researching this themselves. The University sends out a booklet for everyone, the government has a website dedicated to it all.

See here for when you pay back and how (05/06) http://www.goingtouni.gov.au/Main/FeesLoansAndScholarships/LoanRepayments/Compulsory-Voluntary.htm
The info for next year (04/05) http://www.ato.gov.au/individuals/content.asp?doc=/content/45174.htm&page=16&H16
(03/04) http://www.hecs.gov.au/pubs/hecs2004/8.htm#8_2

Edit: To add in time perspective as the question was about next year.