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Study & Training Support Loans

Posted 21 Nov '19

Study & Training Support Loans

By Yana Robinson

There are a number of loans available from the Australian Government to assist eligible students to complete further training and study.

The Higher Education Loan Program (HELP) is one type of these loans which allows students enrolled in a Commonwealth Supported Place at a university to pay for their tuition fees. An individual is required to commence repaying their HELP debt once their repayment income exceeds the relevant threshold.

So, what is an individual’s repayment income? Repayment income can vary from an individual’s taxable income as the following amounts are also factored into the calculation.

  • taxable income (disregarding any assessable First Home Super Saver (FHSS) released amounts)
  • reportable fringe benefits
  • total net investment loss
  • reportable super contributions
  • any exempt foreign employment income amounts.

Employees must advise their employer if they have a HELP debt on their TFN Declaration. The employer will then withhold additional tax from the employee’s wages to cover the compulsory repayment.

From 1 July 2019, all study and training loans are covered by one set of thresholds and rates. Individuals with repayment income of $45,881 or more are now required to make compulsory repayments.

Repayment Income
Repayment Rate
Below $45,881
Nil
$45,881 - $52,973
1.0%
$52,974 - $56,151
2.0%
$56,152 - $59,521
2.5%
$59,522 - $63,092
3.0%
$63,093 - $66,877
3.5%
$66,878 - $70,890
4.0%
$70,891 - $75,144
4.5%
$75,145 - $79,652
5.0%
$79,653 - $84,432
5.5%
$84,433 - $89,498
6.0%
$89,499 - $94,868
6.5%
$94,869 - $100,560
7.0%
$100,561 - $106,593
7.5%
$106,594 - $112,989
8.0%
$112,990 - $119,769
8.5%
$119,770 - $126,955
9.0%
$126,956 - $134,572
9.5%
$134,573 and above
10.0%


Individuals are able to make voluntary repayments at any time to reduce the balance of their debt. Voluntary repayments are in addition to compulsory repayments and are not refundable.

Up until a few years ago, individuals with HELP debts who moved overseas were not required to repay their HELP debt unless they moved back to Australia. This was changed in 2016 and individuals with a HELP debt who move overseas are now required to continue making compulsory repayments. Individuals planning on moving overseas are required to:

  • update their contact details and submit an overseas travel notification within seven days of leaving Australia
  • lodge your worldwide income or a non-lodgment advice.

If you have any questions regarding your HELP debt please contact your WDF Professional team member to discuss this further.

Yana Robinson

Client Services Manager






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