What does the proposed changes to HELP loans mean?
If you are one of the millions of Australians with Higher Education Loan Program (HELP) debt, the proposed changes may offer some benefit.
.
The most significant changes is a one-off 20% reduction in all HELP debts. This reduction would be automatically applied by the ATO before the annual indexation on 1 June 2025. For example, if you have a HELP balance of $27,600, you could expect a reduction of approximately $5,520 in your debt.
In addition, the minimum income threshold for making compulsory HELP repayments is proposed to increase from $54,435 to $67,000.
Another crucial change will be the indexation rate will be the lower of either the consumer price index (CPI) or the wage price index (WPI). This adjustment will be backdated on all existing HELP, VET student loans, and other similar accounts from 1 June 2023.
AcctWeb
Hot Issues
- ATO - Targeted Areas of Focus 2024-25
- 6 ways to improve your business plan
- Benchmarks for small business
- Beware the early lodgment tax trap, CPA Australia warns
- Tax lawyer flags compliance traps with family trusts
- Superannuation on paid parental leave from 1 July 2025
- Tax Time Checklists Individuals; Company; Trust; Partnership; and Super Funds
- Comparison of various Animal Weights
- 2025 Tax Planning Guide Part 2
- From 1 July 2025 ATO Interest is no longer tax deductible
- SME confidence and conditions see uptick over Q1 2025, survey reveals
- Depreciation expert urges property investors to leverage tax depreciation
- Buy a business
- Upskilling and self-education costs
- How secure is your super account?
- Freshwater Resources by Country 2025
- Why Might a Lease Dispute Occur?
- 2025 Tax Planning Guide Part 1
- $20,000 instant asset write-off
- New Bunnings scam warning
- The Largest Empires in the World's History
- All the documents, fact sheets and downloads to do with this year’s 2025-26 Federal Budget
- Winners and Losers - Federal Budget 2025-26
- Building Australia's future and Budget Priorities
- ATO outlines focus areas for SMSF auditor compliance in 2025
- ATO to push non-compliant businesses to monthly GST reporting
- ASIC pledges to continue online scam blitz
- Tax Office puts contractors on notice over misreporting of income
- Tax planning tips for 2024-2025