What happens to a HECS debt when someone dies?
Answered byKevin FinnHead of LegalWatch · 0:34The remaining HECS-HELP balance is cancelled after a person dies; it does not pass to their spouse or children. Compulsory repayments arising from outstanding tax returns and the final return up to the date of death still need to be dealt with. The executor should notify the ATO and complete the necessary returns so the deceased’s tax affairs can be finalised.
For related guidance, see do adult children pay tax on inherited superannuation in Australia?.
Read the video transcript
Remaining HECS debts are completely cancelled when a person dies. They do not pass to your estate, your spouse, or your children. The only portion payable will be the compulsory payment in any of the deceased's outstanding and final tax returns to date of death. The rest of the balance is wiped clean.
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