Student Financial Supplement Scheme in your Payroll Software

Processing large payrolls in Elite Payroll Software is easy.

Students may obtain additional loans to cover educational expenses under a voluntary loan scheme for tertiary students to help cover their expenses while they study. These additional cost are called Financial Supplement debts and are separate from HECS debts.

Five years after the loan is taken out, the ATO 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 student’s taxable income reaches the minimum threshold.

From 31 July 2000, individuals with an accumulated Financial Supplement debt may need to have additional amounts withheld from their paycheques under the PAYG withholding system.

When do I have to withhold the SFSS component?

You must withhold an SFSS component when a payee has provided you with a Withholding declaration; has answered Yes to the question 'Do you have an accumulated Financial Supplement debt?"; and has earnings of over the specified limit.

The SFSS component is to be withheld from all earnings, including taxable allowances, bonuses and commissions. Do not withhold any amount for SFSS from lump sum termination payments. Amounts withheld a for SFSS are included on the payee's PAYG Payment Summary, and in the PAYG withholding box on your Business Activity Statement. It isn't shown separately.

To apply a SFSS tax scale

1 On the Employees List, click to select the employee and then click Employee>Edit. The Edit Employee window is displayed.

2 Click the Taxation tab.

3 Select þ SFSS Repayment and then select the employee’s normal tax scale. Elite Payroll Software will apply the SFSS tax tables and deduct the required SFSS repayments.