HECS fees and tax (1 Viewer)

[pistolpete123]

After I complete university and get a job, can I use my HECS debt or the interest on that debt to reduce my taxable income and thus pay less tax? This is a question for those tax experts out there or for people who have been through this.

 

[Minai]

No.

You'll be taxed more, because HECS is taken out of your income as 'tax' in effect. Your taxable income stands as gross income before deductions such as HECS and personal income tax

 

[llamalope]

what a depressing thought

 

[Minai]

what a depressing thought

I guess thats why many people pay up front.

 

[LeftrightOut]

If your HECS/PELS debt is relevant to your CURRENT occupation it can be classed as an education expense and deducted when you INCUR it. The repayments are not tax deductible at any stage after you incur it. But it must be for your current job not for a future possible job or a change in possible industries etc.

People can opt to pay up front for a number of reasons, some are worried about carrying debt, others are in it for the discount and so on.

 

[gordo]

they take hecs out of your income AFTER your income has been taxed
which bloody sucks