CA2016- 004
Presented by
Jennifer Hunter
Australian Taxation Office
09 September 2015
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Combined HELP measures (CA2016-004)
Status Dashboard
Key Dates: 1 January 2016 & 1 July 2016
Likelihood - Likely
Legislation is - Pending
Current stage - Detailed design
Estimate of SwD impact- Medium.
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Combined HELP Measures (CA2016-004)
Overview of key details of the change.
> Modify ATO systems and products to account for HECS-HELP Benefit no longer applying for
periods after 1/7/2016.
> ATO System and products to reflect the reduction of the voluntary HELP repayment bonus from
5% to NIL.
> Modify ATO system and products across Income Contingent Loans (ICLs) to incorporate new
HELP threshold and rates from the 2016-17 income year.
> Modify ATO systems and products for the potential application of an indexation freeze dependant
on certain criteria for Income Contingent Loan accounts.
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Feedback and questions
The ATO would like Software developers to:
• Adjust calculations for Voluntary Repayment Bonus in the accounting software to remove any
references to the bonus on voluntary repayments
• Remove all references to the HECS-HELP Benefit
• Adjust rates and thresholds in the accounting software to incorporate the new HELP thresholds
and rates. A new minimum repayment threshold for HELP would be introduced from the 2016-17
income year (1 July 2016-30 June 2017). In that year, graduates would commence repaying their
HELP debt once their income reaches an estimated $50,638. A 2 per cent repayment rate would
apply for those with incomes above this new threshold, up to the existing threshold (estimated to
be $56,264 for the 2016-17 income year). The repayment arrangements applying to students with
incomes above the existing repayment threshold would not change.
What would Software Developers need the ATO to do?
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Any further question
Please contact SIPO at:
[email protected]
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Thank you
CA2016- 003
Presented by
Jennifer Hunter
Australian Taxation Office
09 September 2015
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Student Start-up Loan (CA2016-003)
Status Dashboard
Key Dates: 1 January 2016 & 1 July 2016
Likelihood - Likely
Legislation is - Pending
Current stage - Detailed design
Estimate of SwD impact- Medium.
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ATO SwD Event- Services for Tax practitioners
Student Start-up Loan (CA2016-003)
Overview of key details of the change.
• As part of the 2014-15 Budget, the Australian Government announced, subject to the passage of
legislation, that the Student Start-up Scholarship would no longer be available to higher education
students receiving Youth Allowance (student), Austudy or ABSTUDY Living Allowance from 1
January 2015. Students instead would be able to apply for an income contingent loan, to be called
a Student Start-up Loan. However, the legislation to give effect to these measures was not passed
by Parliament in time for 1 January 2015.
• Students will be required to repay the loans through the income tax system when their repayment
income meets the income repayment thresholds. Repayments will be subject to a repayment
hierarchy.
• The repayment rates and thresholds are the same as those used for the Higher Education Loan
Program (HELP).
• A person with a SSL or ABSTUDY SSL debt must advise their payer or payers (if they have more
than one source of income) via a Tax file number declaration or Withholding declaration.
• From 1 July 2016 the ATO accounting system will have the ability to:
> Create an SSL account
> Load debts
> Calculate and raise compulsory repayments, accept voluntary repayments
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Feedback and questions
The ATO would like Software developers to:
• Update accounting systems to include the new Income Contingent Loan – Student Start-up Loans
• Note the following forms and calculators that will need to have updates to include SSL:
• TFN declaration and instructions
• Withholding declarations and instructions
• Medicare Levy variation declaration and instructions
• PAYG withholding e-variation and short variation application
• HELP/TSL tax tables
• HELP/TSL compulsory repayment calculator
• Comprehensive tax calculator
• Tax withheld calculator
What would Software Developers need the ATO to do?
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Any further question
Please contact SIPO at:
[email protected]
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UNCLASSIFIED - ATO SwD Event- Services for Tax practitioners
Thank you