Indexation rate calculation change
The ATO have announced the HELP/Study debt changes that will flow through to clients’ HELP/Study accounts once the law is finalised.
The credits or refunds will be applied as follows:
- The ATO are working their way through the credits to be applied, and expect to finish by end of Jan 2025
- Where the person has a Study debt, the credit will be offset within that Study debt account
- Where the Study loan has been paid off in full, the credit will transfer to the income tax account
- If the person has income tax/ICA debts, the credit will be applied against those debts, and then refund any balance
- If the person has other Government debts, like Centrelink, the credit will be offset against that
- If the person has no other debts across all Commonwealth government agencies, the credit will refunded using the bank details on file with ATO.
CONTACT ALLAN HALL BUSINESS ADVISORS