Partial Up Front Payment

[Gloamglozer]

With the partial up front payments, it says:

Partial up front payments of $500 or more will attract a 20% discount on the payment amount.  To calculate the real value of your payment, including the discount, multiply your payment by 1.25.

Why 1.25 though?

[lacoste]

because you have to pay interest ie. 125% of the required value?

ps: does anyone know if the portal at UOM is working ?

cant seem to log on.

[costargh]

Maybe it says that because the discount USED to be 25% off for payments up front (like 2007 and before I think). The information you are reading may be old hence why it is saying to multiply it by 1.25 instead of 1.20?

Thats my best bet.

[schmalex]

because 20% off 125 is 100. Get it?

[Gloamglozer]

Maybe it says that because the discount USED to be 25% off for payments up front (like 2007 and before I think). The information you are reading may be old hence why it is saying to multiply it by 1.25 instead of 1.20?

Thats my best bet.

It could be a typo.  But they also used 1.25 in their example.

It couldn't be interest because in the booklet, it says that no interest is charged on our debts.

[m@tty]

No it is correct.  Now the discount entitles you to 20% off i.e. you are paying only 80% of price.
Imagine you are paying $1000. In effect this acts as a $1250 payment, as 80% of 1250 is 1000.
Now multiply 1000 by 1.25 ....

A fifth of the real value is a quarter of the payment. Add a quarter to the payment to obtain the real value.

[Gloamglozer]

No it is correct.  Now the discount entitles you to 20% off i.e. you are paying only 80% of price.
Imagine you are paying $1000. In effect this acts as a $1250 payment, as 80% of 1250 is 1000.
Now multiply 1000 by 1.25 ....

A fifth of the real value is a quarter of the payment. Add a quarter to the payment to obtain the real value.

Ah I see it now.  I've been confusing myself all the way through.  Thanks matty.

[m@tty]

That's alright, it is a bit confusing.

[chops_07]

does anyone know how the partial up front payment work?
do you pay 500 by the census date and you get 20% discount on the cost of your whole course.
and the remaining cost is paid through tax when you work?

so confusing!

[Gloamglozer]

does anyone know how the partial up front payment work?
do you pay 500 by the census date and you get 20% discount on the cost of your whole course.
and the remaining cost is paid through tax when you work?

so confusing!

You need to pay at least $500 to get the 20% of the payment amount, not the whole course.  So, for example, if you pay $500, you multiply it by 1.25 and that gives you $625.  So you pay $625 and the government pays this amount:

Total cost of course for the year or semester - $625 = What the government pays

What the government pays is what you owe them and what will come out of your taxes when you earn more than $43 k/per (including super contribution).

[chops_07]

why do you multiply by 1.25?

so its like the 500 payment turns into a 625 pretty much?

thanks heaps.

[Gloamglozer]

why do you multiply by 1.25?

so its like the 500 payment turns into a 625 pretty much?

thanks heaps.

lol.  That's exactly why I made this thread - why 1.25?  Read matty's post and you'll get why since it's a 20% of the payment amount.

And from my understanding from the booklet that I got in the package, yes the $500 becomes $625.

[chops_07]

yeah i got it, thanks heaps!
hopefully next wednesday will be pretty good and o-week