I just completed all my tax returns for this financial year, and started doing some calculations as to how much HECS I have remaining. I’m getting very close to the final year of my HECS debt, and I always recall thinking back when I was at Uni, I would take advantage of the voluntary payment loophole where you can pay out your HECS in advance in your final year and take home a sizeable discount.
The HECS repayment amounts are shown here:
| Repayment income | Repayment rate (% of repayment income) |
|---|---|
| Below $51,309 | Nil |
| $51,309–$57,153 | 4.0% |
| $57,154–$62,997 | 4.5% |
| $62,998–$66,308 | 5.0% |
| $66,309–$71,277 | 5.5% |
| $71,278–$77,194 | 6.0% |
| $77,195–$81,256 | 6.5% |
| $81,257–$89,421 | 7.0% |
| $89,422–$95,287 | 7.5% |
| $95,288 and above | 8.0% |
So you can apprecicate as you get higher up the list, you are looking at a fairly sizeable increase in the amount of Tax (or HECS) taken out of your monthly salary.
In doing my research though, it seems that that discount is going to end, and although I’m probably 1.5 years away from paying off my HECs, it might be worth me taking the 5% bonus while it still here.
I’m sure I’m not the only person in my age group who has thought of this, or is close to paying their HECS off, so time to spread the word, and pay a chunk off in late December.
Philip Nye 