The first thing you should know is that your HELP debt is adjusted annually to account for changes in the Consumer Price Index (CPI). This means that your debt grows slightly each year in order to stay up with inflation. For Example, if in 2024 the indexation rate is 1.8%, which indicates that if you had a $10,000 debt on June 1, 2024, it would climb to $10,180 on June 1, 2025.
The following table shows the repayment thresholds and rates for 2022-23 and 2023-24:
$75,000 x 0.035 = $2,625
This amount will be deducted from your income tax refund or added to your tax liability when you lodge your tax return. You can also choose to make voluntary repayments to your HELP debt at any time during the year. Voluntary repayments might help you pay off your debt faster and save money on indexation.
We hope this blog post has provided you with a better understanding of how your HELP repayments are calculated and what factors influence them. If you have any questions or need further assistance with your HELP debt or tax return, please contact us today. You can also browse our other blog posts for topics that may be of interest to you.