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.
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:
If you have any questions regarding your HELP debt please contact your WDF Professional team member to discuss this further.
Client Services Manager
Setting goals for you and your business for the new financial year
The new financial year is a new beginning. As a business owner this a great time for you to reflect on where you are at and think about your business goals for the financial year ahead. Read More…
End-of-Financial-Year Checklist for Businesses
Don’t let the end of the financial year catch you off guard. Use our EOFY checklist to get organized, stay compliant, and plan for growth. Read More…
What makes a business expense tax deductible?
The ATO recently published some ‘wild claims’ that business owners had tried to make for business expenses. But what CAN you claim and what CAN’T you claim? Read More…