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
The Superannuation Guarantee Explained
By Charles Talbot
Are you paying the correct amount of superannuation to your employees on time? The Superannuation Guarantee can be complex. It is critical
to understand and ensure you are meeting your obligations.
Read More…
Contractor or Employee – What You Need to Know
Should your staff be contractors or employees? There are many factors to assess and it’s the business owner’s responsibility to get it right. Read More…
Tax Measures for Primary Producers
By D'Lene Browning
There are a range of tax measures that are available to primary producers to help minimise tax obligations. Now is the time to review your
financial estimate for the 2021 financial year.
Read More…