Are you in dire need of financial support? Whether you are a single parent who needs the extra money for your children’s needs, an entrepreneur who wants to start a business, or a student who needs to pay for tuition, you can ask for aid through the Financial Supplement Debt. But not a lot of people know about this debt option, so what is financial supplement debt?
Financial Supplement Debt is a financing scheme offered by the Australian government’s Social Security office. This can be availed by many people from various walks of life who need the financial means to engage in their desired endeavor, be it business, education, and more.
It was launched and became effective back in December 2003. Currently, the Australian government has closed the program to new borrowers in the hopes of improving the program and its implications. The decision to close the program, however, does not affect open obligations. Meaning, people who are registered under it still must continue their repayments.
The program aimed to address the issue of the people in the following situations:
People in Serious Financial Hardship
There are several cases where people would be considered as being in a state of serious financial hardship. Being a single parent, for instance, would be a good reason to seek for financial aid. Other cases include exposure to calamity and hardship, accidents, and more. That is why it is important to learn what is financial supplement debt all about.
To determine your current status, you may call the Australian Taxes for a proper assessment. Once an individual is reported to be in a serious financial hardship, financial supplement debt is offered to get the person back on his or her feet. Within a period, he or she will be given the chance to use it for her daily living expenses like food, accommodation, clothing, medical treatment, and other essential expenses.
Capital for Prospective Businesses
Though this is uncommon, there have been cases where individuals or businesses apply for financial supplement debt to put up new businesses or grow an existing one. They are bound by law to pay it back within the date set in the contract. Interests may apply. Small and micro businesses are the ones more qualified for this debt program than their large-scale counterparts. To know more about this program for businesses, you may visit the Australian Financial Security Authority website or contact a registered Australian financial counsellor to get expert advice on this debt option.
Disadvantaged Tertiary Students
The program was mostly utilised by tertiary students who are seeking financial supplements for higher education. In particular, the Student Financial Supplement Scheme (SFSS) is the most heavily availed portion of the Financial supplement debt provided by the Social Security Administration. The loans in this specific program were designed to assist students who wanted to study in college without having to worry about the burden of expensive tuition fees. The scheme had guidelines that include adjustments for cost of living expenses, student income level, and an option to opt-out of paying while still in school. Since July 2006, a new supplement debt program has been set to replace the older program, the former having stricter limitations on the repayment period and having more concrete policies on income levels required for repayment during contract periods.
About the Financial Supplement Debt Repayment
Borrowers, particularly those classified under the SFSS, have the option to opt-out of paying while still in school. However, by making payments within the loan contract period, borrowers can earn a bonus or reduction in interest. This incentive was implemented to help generate consistent income for the government while making sure that the borrowers pay back. Repayment is usually coursed through the taxation system for compulsory repayments. Once the borrower’s income goes above the minimum repayment income threshold, repayment must commence. Visit the Australian Taxation Office’s website to check out the latest repayment income thresholds and rates.
Difficulty in Repayment?
Are you currently enrolled in the financial supplement debt? Chances are you are still busy paying off those debts and meeting your obligations within the contract period. We understand how stressful this could be. Luckily, there is a solution to get out of it. If you are having troubles paying your financial supplement debt due to financial difficulty, you could contact the Tax Office. You may also consult with a financial counsellor to discuss the options available to help you meet your obligations. For instance, there are taxation liabilities from which you can apply to help debt to be released. If you need assistance to help you understand what is financial supplement debt more, get in touch with us.
Talk to a Financial Counsellor Today!
We hope this article has been helpful in providing knowledge and insights on what is financial supplement debt in Australia. If you need further clarifications on the matter or would like to seek for help regarding your debt repayment or problem on personal bankruptcy in Australia, talk to a financial counsellor to be properly guided.
My Bankruptcy is a provider of debt solutions that you can turn to in times of financial trouble. Contact our bankruptcy experts on 1300 255 059 or send a message to steve@mybankruptcy.net.au.
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