Domenic is a practising lawyer and he recently completed his law degree and his outstanding HELP debt as at 29 June 2020 (before the 2020 tax return is assessed) is $14,800. Domenic's taxable income for the 2020 year was $121,000. Domenic also has a reportable fringe benefit amount of $12,000. What amount of HELP repayment will Domenic have to make in the 2020 tax return?

Question

Quizplus · Accepted Answer

In Australia, the Higher Education Loan Program (HELP) repayment is calculated based on your total income for the year, which includes your taxable income plus any reportable fringe benefits. For the 2020 tax year, Domenic's total income would be his taxable income of $121,000 plus his reportable fringe benefits of $12,000, totaling $133,000. Based on the HELP repayment thresholds and rates for the 2020 tax year, this income level would place him in a repayment bracket where he is required to repay 9% of his total income. Therefore, his HELP repayment amount would be 9% of $133,000, which equals $11,970.

Domenic Is a Practising Lawyer and He Recently Completed His