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Prior to the upgrade, if you were a labour hire firm and had contractors who were not a company but used their TFN, you could select the box to allow additional tax deductions for HELP / HECS debts. With the new Phase 2 STP, Xero have confirmed that if you have labour hire using TFN's and they have a hecs debt you cannot check the box and will need to manually calculate the hecs amount to deduct each payrun. This means that every payrun, for every hecs debt you will need to manually add an amount working through the various HECS thresholds. Given this was a feature before the "upgrade" (read downgrade), one would think it could be transferred over. Xero support have advised they effectively don't care and get on with manually calculating.

You can check the HECS button if you list the labour hire employee as a regular employee, but I have confirmed with the ATO that we still need to report labour hire income separately and not as standard employee wages.

Requesting they bring the function back to be able to have a TFN labour hire employee who (whether Xero likes it or not) have a HECS debt and be able to calculate the correct PAYGW to withhold.