Yes. If you make a voluntary repayment of $500 or more, you will receive a 10% bonus. This means your account will be credited with an additional 10% of your payment.
Example
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Tinka owes $5,250 and she wants to make a $2,500 voluntary repayment. With the 10% bonus, the value of Tinka's repayment is $2,750 ($2,500 x 1.10), and her total debt is reduced to $2,500 ($5,250 - $2,750). Tinkas bonus amount is $2,750 less $2,500 = $250. |
If you wish to pay off your total debt, the amount of your repayment is your total debt divided by 1.10. If your total debt is less than $500 and you make a voluntary repayment to pay off the total amount, you will still receive the 10% bonus.
There is usually a delay between the census date for a unit of study, and when the Tax Office processes and records your debt for that unit. So if you have only recently undertaken a unit against which you wish to make a voluntary repayment, you should first contact the Tax Office to see if the debt has been recorded against your TFN. If not, the Tax Office will be able to advise you what you need to do (see Tax Office).
You may also benefit from making a voluntary repayment before indexation is applied on 1 June. If you intend to make a voluntary repayment before indexation is applied, you should allow enough time for the payment to be processed and credited to your account before 1 June.
If you intend to pay off your total debt with a voluntary repayment, ensure you make the repayment before you lodge your income tax return. If your tax return is processed before your voluntary repayment is credited to your account, a compulsory repayment may be included in your income tax notice of assessment and you may not receive the 10% bonus.
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