2017 Tax Planning Checklist: HECS/HELP Debt

Hecs 

The recent budget has reduced the thresholds on which HECS repayments are required.
 
The repayment income thresholds and rates for 2016/17 are set out below. The new lower income repayment threshold of $42,000 is proposed to commence in 2018/19.
 
Legislation is now in place to require Australian graduates living overseas to make HECS payments based on their income in the 2016/17 year if they earn above the HELP/TLS income thresholds. These measures require those going overseas for more than six months from 1 January 2016 to register with the ATO, while those already overseas must register by 1 July 2017.
 
2016-17 Repayment Income Thresholds and Rates
 
Repayment Income Rate
Below $54,868 NIL
$54,869 to $61,119 4%
$61,120 to $67,368 4.5%
$67,369 to $70,909 5%
$70,910 to $76,222 5.5%
$76,223 to $82,550 6%
$82,551 to $86,894 6.5%
$86,895 to $95,626 7%
$95,627 to $101,899 7.5%
$101,900 and above 8%