HECS-HELP Benefit

How is the HECS-HELP benefit it calculated

The benefit amount you receive each year depends on the number of weeks you are employed in an eligible position throughout the year you are claiming. The formula is:

(Maximum HECS-HELP benefit amount for the year) (/ 52) (X the Number of weeks in the year you were employed)

If you have already made your compulsory repayment as part of your tax return lodgement, the ATO will transfer your HECS-HELP benefit to your nominated bank account.

If you’re claiming the HECS-HELP benefit as an Early Childhood Education teacher in a rural area and you are not over the HELP repayment threshold, your HECS-HELP benefit amount will be used to reduce your existing HELP debt.

Maximum HECS-HELP benefit amounts per year:

This table lists the maximum benefit amounts for each income tax year.

Income year	Early childhood education teachers	Maths or science graduates	Education and nursing (including midwifery) graduates
2015–16	$1,918.39	$1,798.48	$1,798.48
2016–17	$1,947.17	$1,825.46	$1,825.46

HECS-HELP benefit Examples:

Example 1: Worked Full Time during the year.

Jack graduated from a Statistics degree in June 2014. Jack was then employed as a Maths teacher in Brisbane for the entire 2015-16 income year and earned $65,000.

As Jack earned above the HELP Repayment Threshold he is required to make a compulsory HELP repayment on his tax return.

Once Jack submits his tax return, he also completes a HECS-HELP benefit application form which is approved by the ATO.

The benefit Jack is eligible for is calculated by:

$1798.49 (Max amount he could receive) / 52 X 52 (Number of weeks Jack employed) =

$1798.49

As Jack was employed for the full tax year he’s eligible for the full benefit amount and receives $1798.49 from the ATO.

Example 2: Did not work for the full tax year.

Sandra graduated from her Nursing course in December 2015. She then worked as a nurse full time from January 2016 to June 2016, a total of 26 weeks in the 2015-16 tax year.

Sandra’s total income on her tax return is $60,000 meaning she is required to make a compulsory HELP repayment on her return.

Once Sandra submits her tax return, she also completes a HECS-HELP benefit application form which is approved by the ATO.

The benefit Sandra is eligible for is calculated by:

$1798.49 (Max amount she could receive) / 52 X 26 (Number of weeks Sandra employed as a Nurse) =

$899.25

As Sandra was employed as a Nurse for 26 weeks she’s entitled to a pro-rata HECS-HELP benefit amount and receives $899.25 from the ATO.

Example 3: Early Childhood Teacher

Mary graduated from a teaching degree in June 2014. She was then employed as an Early Childhood teacher in Alice Springs for the entire 2015-16 income year and earned $45,000.

As Mary earned below the HELP Repayment Threshold she is unable to submit a claim for the HECS-HELP benefit as a teaching graduate.

However, as Mary works in a rural area (Alice Springs), she can submit a claim for the HECS-HELP benefit as an Early Childhood Education Provider

The benefit Mary is eligible for is calculated by:

$1918.39 (Max amount she could receive) / 52 X 52 (Number of weeks Mary employed) =

$1918.39

As Mary was employed for the full tax year she’s entitled to the full benefit amount. As no compulsory repayment was made on her tax return this year, the ATO does not pay this amount to Mary and instead reduces her HELP debt by $1918.39.

Example 4: Early Childhood Teacher earning above HELP Repayment Threshold

Tom graduated from a teaching degree in December 2013. In June 2015 he moved to Karratha to take up a position as an Early Childhood teacher for the entire 2015-16 income year and earned $63,000.

Tom’s total income on his tax return is $63,000 meaning he is required to make a compulsory HELP repayment on his return.

Tom then submits a HECS-HELP benefit application as a teacher which is approved by the ATO. The benefit Tom is eligible for is calculated by:

$1798.49 (Max amount he could receive) / 52 X 52 (Number of weeks Tom employed) =

$1798.49

As Tom also works in a rural area (Karratha), he can submit a second claim for the HECS-HELP benefit as an Early Childhood Education provider.

The benefit Tom is eligible for is calculated by:

$1918.39 (Max amount he could receive) / 52 X 52 (Number of weeks Tom employed) =

$1918.39

As Tom met the eligibility criteria to claim the HECS-HELP benefit as both a Teacher and a rural Early Childhood education provider, he submitted and was approved for two HECS-HELP benefit claims.

Other important HECS-HELP benefit information:

There are time limits to adhere to

The rules with claiming the HECS-HELP benefit state that you have two years from the end of the financial year to submit your claim. This means that for the:

• 2015-16 tax year – you’ll need to submit your claim before 30 June 2018
• 2016-17 tax year – you’ll need to submit your claim before 30 June 2019

ATO won’t accept late applications and if you’re eligible for the HECS-HELP benefit, you can only claim a total of 260 weeks (or full years of the benefit). This 260 week limit is also subject to meeting the other eligibility requirements.

Remember the 2016-17 tax year is the last year the HECS-HELP benefit will be available.

If you have any questions about the scheme please don’t hesitate to get in touch with us on [email protected] or leave a comment over on our Facebook page.