Compulsory repayments of your study and training support loan are made through the income tax system.
If you have a loan when you lodge your tax return and your repayment income is above the minimum repayment threshold, ATO will work out your compulsory repayment and include it on your notice of assessment. This will occur even if your tax return is for an income year before you started studying.
Your compulsory repayment rate increases as your income increases. The more you earn, the higher your repayment. Your compulsory repayment is based on your income alone – not the income of your parents or spouse.
You will not have to make a compulsory repayment if you have a spouse or dependants and if (due to low family income) you:
are entitled to a reduction of the Medicare levy
do not have to pay the Medicare levy.
If you do not have to make a compulsory repayment, you may ask your employer not to withhold additional amounts from your pay by completing the Medicare levy variation declaration form (NAT 0929).
Remember, we are here to help you with your tax and BAS. Contact us on 0481 953 556 or email us at firstname.lastname@example.org to find out more.
Source: Ato.gov.au.2021. study and training support loans – compulsory repayments. Link available here