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DeductionsDeductionsHECSHECS

Stage 6 - Year 11Stage 6 - Year 11

Applied Mathematic(Preliminary General 1)

2

Higher Education Contribution Scheme

Has been replaced with

Higher Education Loan Programme

A loan from the Governmentto cover all or part of your student fees.

You do not need to start repaying your HELPloan until your income is above the set threshold

for compulsory repayments.

3

If you pay at least $500 by the census date You will be entitled to a 20% discount

on your HELP loan.

ExampleDiscount on HELP loan by a contribution of $500.

Discount = 20100

x $500 = $100

A payment of $500 (before the census date)reduces the loan by $600.

4

The HELP loan does not attract interest.

Consumer Price Index

It is indexed to the CPI on June 1 each yearTo the annual CPI for March.

ExampleIf your HELP loan was $50 000 on June 1 2009and the annual CPI to March 2009 was 2.9%.

Loan Increase = 2.9100

x $50000 = $1450

New Loan Amount =$50000 + $1450= $51 450

5

HELP repayment thresholds and rates2009–10

HELP repayment

income (HRI*)

Repayment rate

Below $43,151 Nil

$43,151–$48,066

4% of HRI

$48,067–$52,980

4.5% of HRI

$52,981–$55,764

5% of HRI

$55,765–$59,943

5.5% of HRI

HELP repayment

income (HRI*)

Repayment rate

$59,944–$64,919

6% of HRI

$64,920–$68,336

6.5% of HRI

$68,337–$75,203

7% of HRI

$75,204–$80,136

7.5% of HRI

$80,137 & above 8% of HRI

From 1 July 2009 *HRI will be the sum of, taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt

foreign employment income.

6

George earns $49 000 and has a HECS debt of $12 000.

HELP repayment

income (HRI*)

Repayment rate

Below $43,151 Nil

$43,151–$48,066

4% of HRI

$48,067–$52,980

4.5% of HRI

$52,981–$55,764

5% of HRI

$55,765–$59,943

5.5% of HRI

HELP repayment

income (HRI*)

Repayment rate

$59,944–$64,919

6% of HRI

$64,920–$68,336

6.5% of HRI

$68,337–$75,203

7% of HRI

$75,204–$80,136

7.5% of HRI

$80,137 & above 8% of HRI

How much does he need to repay?

Repay = 4.5100

x $49 000 = $2 205

7

Megan earns $42 000 and has a HECS debt of $12 000.

HELP repayment

income (HRI*)

Repayment rate

Below $43,151 Nil

$43,151–$48,066

4% of HRI

$48,067–$52,980

4.5% of HRI

$52,981–$55,764

5% of HRI

$55,765–$59,943

5.5% of HRI

HELP repayment

income (HRI*)

Repayment rate

$59,944–$64,919

6% of HRI

$64,920–$68,336

6.5% of HRI

$68,337–$75,203

7% of HRI

$75,204–$80,136

7.5% of HRI

$80,137 & above 8% of HRI

How much does he need to repay?

Repay = $0