Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)
PAYG withholding for SFSSPAYG withholding for SFSS
Start here
Get a plain-English read of PAYG withholding for SFSS
Turn the raw legal text into a practical explanation grounded in Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes).
PAYG withholding for SFSS
The Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for tertiary students to help cover their expenses while they studied. Five years after the loan is taken out the Tax Office becomes responsible for collecting the outstanding loan, and the loan becomes an accumulated Financial Supplement debt. Compulsory repayments of accumulated Financial Supplement debts are made through the tax system when the payee’s taxable income is above the minimum threshold.
Payees with an accumulated Financial Supplement debt need to have additional amounts withheld from their payments under the PAYG withholding system. The additional amounts are to cover the payee’s anticipated compulsory repayment that will be raised in their income tax notice of assessment.