Changes to HELP repayment rates and threshold
New HELP repayment rates and thresholds have been set for from 1 July 2019.
These changes have been implemented in an effort to improve the sustainability of the Higher Education Loan Program (HELP) and the debt recovery of the Student Financial Supplement Scheme (SFSS).
This means that current repayment rates and thresholds will be replaced with new ones, which will have additional repayment rates and thresholds.
What are the new thresholds?
Specifically, a new minimum repayment income threshold of $45,881 will be introduced with 1% repayment rate. There are a further 17 thresholds with a maximum threshold of $134,573 with a 10% repayment rate.
The SFSS repayment thresholds will also be brought into link with the HELP repayment thresholds from the 2020 income year.
The repayment thresholds will then be indexed using CPI rather than Average Weekly Earnings.
Want more information?
If you would like to find out more, contact us by phoning TaxArana on 3551 6111.
Reference: Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018.