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IreneRSA's avatar
IreneRSA
Experienced Cover User
6 days ago
Solved

AO HELP Repayment Calculation Incorrect?

Hello,
Having an issue in AO where I'm not convinced the HELP repayment is being calculated correct. Screenshot attached of the estimate however they have a HELP debt plus $28k of exempt fringe benefits. Shouldn't the adjusted taxable income for the HELP repayment be $87k and therefore a HELP repayment should be included?

desktop tax
  • AidenC's avatar
    AidenC
    6 days ago

    Hey Irene!

     

    Thanks for your message.

     

    A few things to check, I can see as per the estimate this client has 1 dependant child. Under the Medicare section of the return have you entered this in at label M1 - Y? If so, the M1 section is only for clients who have a Medicare Levy reduction or exemption would affect their requirement to repay HELP debt for this financial year.

    If the client does not have a Medicare Levy reduction or exemption, could you remove the dependent child from M1 - Y and enter this at label M2 - D and then check the estimate?

    If this does not resolve the HELP repayment in the estimate, could you please give our team a call on 1300 555 117 or open up a chat via MYOB AO/AE or on our website so that we can have a look further into this return for you.

     

    Please let me know if you have any questions!

     

    Cheers,

    Aiden.

3 Replies

  • AidenC's avatar
    AidenC
    MYOB Staff
    6 days ago

    Hey Irene,

    I've just confirmed by going back a few years and can confirm that the Medicare Levy reduction or exemption with a dependent child affecting the HELP repayment isn't new. I would potentially recommend speaking to the ATO for better information on when this was potentially changed.

     

    Please let me know if you have any further questions!

     

    Cheers,

    Aiden.

  • AidenC's avatar
    AidenC
    MYOB Staff
    6 days ago

    Hey Irene!

     

    Thanks for your message.

     

    A few things to check, I can see as per the estimate this client has 1 dependant child. Under the Medicare section of the return have you entered this in at label M1 - Y? If so, the M1 section is only for clients who have a Medicare Levy reduction or exemption would affect their requirement to repay HELP debt for this financial year.

    If the client does not have a Medicare Levy reduction or exemption, could you remove the dependent child from M1 - Y and enter this at label M2 - D and then check the estimate?

    If this does not resolve the HELP repayment in the estimate, could you please give our team a call on 1300 555 117 or open up a chat via MYOB AO/AE or on our website so that we can have a look further into this return for you.

     

    Please let me know if you have any questions!

     

    Cheers,

    Aiden.

  • IreneRSA's avatar
    IreneRSA
    Experienced Cover User
    6 days ago

    Hi Aiden,

    Thanks for your reply. I have removed the dependant from that section and it has calculated the HELP repayment correctly.
    Is this something new? Other years have been prepared the same with and the calculation has been correct?
    Thanks for your assistance.

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