Tips to reduce study and training loan balances

April 14, 2023 | Robyn Bull

If you have a study and training loan balance (e.g., a HELP debt), it may be worthwhile to consider methods of reducing the balance to ensure you are not left with a large tax bill when your 2023 income tax return is lodged.

While there is no interest charged on study and training loans, indexation is added to these debts on 1 June each year, based upon the consumer price index (‘CPI’).  Given the current rate of inflation, individuals with study and training loan balances should expect a larger than normal adjustment this year.

If you have a study and training loan balance, it is worth checking your loan balance and considering the following tips:

Indexation will not apply to a study and training loan on 1 June if the balance is nil.  Any loan debt over 11 months old will be subject to indexation.

Editor: The compulsory repayment threshold for the 2023 financial year is $48,361.  If you earn over this amount, the compulsory repayment is worked out when your tax return is lodged, and it will be included on your notice of assessment.

 

 

 

 

 

 

 

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