Paying Your HECS debt

Paying your Higher Education Contribution Scheme (HECS) debt

HECS

WHAT IS THE HIGHER EDUCATION CONTRIBUTION SCHEME (HECS)?
HECS means that, as a student, you pay some of the cost of your higher education. The Australian Government pays for the rest--around three-quarters--of the cost.
HECS applies to undergraduate university courses funded by the Australian Government. It is charged on a semester basis for every semester of the course in which you are enrolled.

ERROR MSGHOW DO YOU PAY YOUR HECS?
There are a number of ways you can pay your HECS:
pay the whole amount upfront and receive a 25% discount
pay at least $500 upfront and defer the remainder
defer the whole amount for payment later through the tax system, and
make voluntary repayments for any unpaid amount after the debt has been transferred to the Tax Offce.

ERROR MSGHOW MUCH WILL YOUR REPAYMENTS BE?
Once your income reaches the minimum level you must start repaying your HECS debt. In 2003-04 the minimum level is $25,348. The more you earn, the higher your repayments will be until your debt is repaid. When you lodge your yearly income tax return the Tax Ofce will calculate your compulsory HECS repayment.

CAN YOU PAY YOUR HECS SOONER?
As well as making compulsory repayments through the tax system, you can make as many voluntary repayments to the Tax Ofce as you like. If your repayment is $500 or more you will also receive a 15% bonus. Making a voluntary repayment reduces your HECS debt immediately and means that overall you end up paying less.

DO YOU HAVE A HECS DEBT AND ARE WORKING?
If you are working and have a HECS debt, you must advise your employer. When you start work you should complete a Tax le number declaration form (NAT 3092) for your employer. Make sure you answer YES to the question 'Do you have an accumulated HECS debt?' Your employer will then withhold additional amounts to cover your anticipated compulsory HECS repayment. These additional amounts are only an estimate of the amount needed to cover your compulsory HECS repayment for the year which will be calculated once your tax return is lodged.

HIGHER EDUCATION REFORM AND HECS
The Australian Government has announced a higher education reform package, Our Universities: Backing Australia's Future, which has been approved by Parliament. Changes to come into effect in 2005 may affect existing HECS students. To nd out more about the reforms, visit the Backing Australia's Future website at www.backingaustraliasfuture.gov.au
Students who commence a course of study prior to 1 January 2005 will be able to study under current HECS contribution levels set by the Commonwealth until the end of 2008, unless they -
defer their studies and do not incur a HECS liability
complete their current course
complete another award at the same level as their current course, or
choose to study under the new system.
Hoteles de estadia nocturna ToulouseStudents who, in 2004, accept a place, enrol in, but then defer their course of study are to be treated as pre-2005 students, provided they remain enrolled in at least one unit of study after the census date for that unit of study for that year.

MORE INFORMATION
For enquiries about your HECS debt, repayments, indexation and PAYG, phone the Tax Offce or read Repaying your HECS debt (NAT 3913) which you can get by visiting the www.ato.gov.au website or phoning the Tax Office's Publications Distribution Service on 1300 720 092.
For other tax enquiries phone the Personal Tax Infoline on 13 28 61.

For general HECS enquiries such as who pays HECS and remission of HECS debt, contact the Department of Education, Science and Training--phone 1800 020 108, submit an enquiry form at http://sfes.dest.gov.auhotel rooms Leipzig or visit the Going to uni: support for students website at http://www.hecs.gov.au

2 YOU AND THE HIGHER EDUCATION CONTRIBUTION SCHEME (HECS)