If your employee indicates they have a study or training loan on their Tax file number declaration or Withholding declaration form, you may need to withhold an extra amount from their pay to cover compulsory repayments at the end of the financial year.
From 1 July 2019, the new minimum repayment threshold is $45,881. This means that employees who have previously earned below the threshold may now need to make compulsory payments for the first time.
Be sure to let your employees know they need to declare their study or training loan to avoid bill shock at the end of the financial year. This could mean that your existing employees may need to complete a new Tax file number declaration or Withholding declaration form to ensure they have answered the study or training loan question correctly.