What are my payment options under HECS-HELP?
Full up-front payments
Partial up-front payments
Obtaining a HECS-HELP loan
How do I get a TFN?
What are my payment options under HECS-HELP?
If you are eligible for HECS-HELP, you may either:
- make a full up-front payment of your student contribution for all the units of study you are enrolled in as a Commonwealth supported student, that form part of your course of study, and that have the same census date. You will receive a 20% discount;
- pay part of your student contribution up-front, receive a 20% discount on the payment amount where it totals $500 or more, and obtain a HECS-HELP loan for the remainder. (The units of study towards which you are making a part payment of $500 or more must be part of the same course of study and have the same census date); or
- obtain a HECS-HELP loan for the full amount of your student contribution.
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Full up-front payments
To make a full up-front payment of your student contribution, you only need to pay 80% of the total of the student contribution amounts for all the units you are undertaking as part of a course of study and that have the same census date. You must make this payment on or before the census date (or an earlier date set by your higher education provider) for the units. The Australian Government will pay the other 20% (your HECS HELP discount) direct to your provider on your behalf.
You should be aware that your provider must not accept a payment of more than 80% of your student contribution for any particular unit.
Example
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Pablo is enrolled in 4 units as part of a Bachelor of Engineering, all with a census date of 31 March 2007, and is eligible for HECS-HELP. The total student contribution amount for these 4 units is $3,000.
Pablo wishes to make a full up-front payment of his student contribution. To do so, he must pay $2,400 (80% of $3,000) to his provider on or before 31 March 2007. The Australian Government will pay the remaining $600 (the HECS-HELP discount) to Pablo’s provider.
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If you do not intend to obtain a HECS-HELP loan, you are not required to provide your tax file number (TFN) on your Request for Commonwealth support and HECS-HELP form. However, you may wish to provide your TFN as a safety net. This will ensure that, if you are unable to make the up-front payment on or before the census date, you will be able to obtain a HECS-HELP loan. TFNs are used to enable your provider to advise the Tax Office of the amount of your debt. If you do not pay your entire student contribution up-front and have not provided a TFN on or before the census date, your provider must cancel your enrolment as a Commonwealth supported student. Your provider does not have any discretion to accept an up-front payment after the census date.
Note that your provider may set a date for up-front payments which is earlier than the census date – check with your provider.
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Partial up-front payments
If you pay less than 80% of the student contribution for the units in which you are enrolled in a particular course of study and that have the same census date, this is a partial up-front payment. Partial up front payments must be made on or before the census date (or an earlier date set by your provider). Partial up-front payments that total $500 or more will attract a 20% discount on the payment amount. To calculate the real value of your payment, including the discount, multiply your payment by 1.25. Your student contribution amount minus your payment and the discount will be the amount of your HECS HELP debt.
Example
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Isabelle undertakes 4 units as part of her Bachelor of Science, all with a census date of 31 March 2007, and is eligible for HECS-HELP. The total student contribution for these units is $3,000.
Isabelle makes a partial up-front payment of $500 before the census date, which means her payment, including the discount, is $500 x 1.25 = $625. Her HECS-HELP debt will therefore be $3,000 – $625 = $2,375.
The Australian Government will pay this amount ($2,375), plus the amount of the discount ($625 - $500 = $125) to Isabelle’s provider on her behalf. Isabelle will be required to repay the amount of her debt ($2,375) when she earns above the minimum threshold for compulsory repayment. |
If you intend to make a partial up-front payment, you must provide your TFN on your Request for Commonwealth support and HECS-HELP form to enable you to obtain a HECS-HELP loan for the unpaid portion of your student contribution. Failure to do so will result in your provider cancelling your enrolment as a Commonwealth supported student in that unit.
You should be aware that your provider must not accept a payment of more than 80% of your student contribution for any particular unit.
Note that your provider may set a date for up-front payments which is earlier than the census date – check with your provider.
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Obtaining a HECS-HELP loan
To obtain a HECS-HELP loan for all or part of your student contribution, you must provide your TFN on your Request for Commonwealth support and HECS-HELP form. Failure to do so will result in your provider cancelling your enrolment as a Commonwealth supported student in that unit if you have not made a payment of 80% of your student contribution.
If you choose not to provide your TFN, you will not be eligible for a HECS-HELP loan. If you cannot quote your TFN when you enrol, you should obtain a TFN, or a certificate from the Tax Office stating that you have applied for one, and provide it to your provider on or before the census date. If you cannot quote your TFN or supply a certificate on or before the census date, you will not be eligible for a HECS-HELP loan. TFNs are used to enable your provider to advise the Tax Office of the amount of your debt.
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How do I get a TFN?
If you do not have a TFN, you will need to complete a Tax file number application or enquiry for an individual form, available from the Tax Office website at www.ato.gov.au.
TFNs cannot be allocated over the telephone, by facsimile or email. For information on how to apply for a TFN, or if you cannot find your TFN, call the Personal Tax Infoline on 13 28 61.
It is essential to apply early to ensure you have your TFN on or before the census date. A TFN is usually provided within 28 days of application. If you are applying for a TFN for the purpose of HECS HELP, and it is within one month before the relevant census date, you should request a Certificate of application for a TFN from a Tax Office shopfront. If you have not received your TFN within 10 days before the census date, you should provide this certificate to your provider as proof that you have applied.
You must then quote your TFN to an appropriate officer of your provider within 21 days of the day the Tax Office issues you a Tax File Number Advice.
What do I need to do if I am unable to get my Certificate of application from the Tax Office shopfront?
If you have mailed your Application for a TFN to the Tax Office and you are unable to get your Certificate of application from a Tax Office shopfront, contact the Tax Office on 1300 650 225 for advice on what you need to do.
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