Indexation rate calculation change
The indexation rate for study and training loans is now based on the Consumer Price Index (CPI) or Wage Price Index (WPI) – whichever is lower.
This change is backdated to indexation applied from 1 June 2023 for all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other study or training support loan accounts. Indexation rates for 2023 and 2024 have changed to:
- 3.2% for 1 June 2023 (reduced from 7.1%)
- 4% for 1 June 2024 (reduced from 4.7%).
If you had a study loan that was indexed on 1 June 2023 or 1 June 2024, you don’t need to do anything. We're processing recredits for 2023 and 2024 indexation rate changes:
- Our calculations will accommodate any compounding effect of the indexation across both income years.
- Most people will see these credits on your account by the end of January. Some credits will take a bit longer than others to show on your account depending on the complexity (for example, those with a non-pursuit waiver transaction on their account).
- View your loan account online to find out what you'll see on your account.
If we have your mobile number on our records, we'll notify you by SMS when we have processed the recredit to your loan account.
Where your study loan is in credit after the adjustment, you may receive a refund for the excess amount to your nominated bank account if you have no outstanding tax or Commonwealth debts.
If you're expecting a refund:
- make sure your bank details are up to date with us or your tax agent – you can check and update your details with us online or by phone
- if your tax agent's account is listed as your nominated bank account, they'll send your refund to you – contact your agent if you have any questions.
If some or all your indexation was waived in 2023 or 2024, you'll only get a recredit on the indexation that was not waived. We will apply the full indexation recredit to your account, and then apply a separate transaction to correct the amount.
Proposed changes for study and training loans
DisclaimerThe Australian Government is now in caretaker. Announced measures for study and training loans that are not yet law will be subject to consideration by the incoming government. In these circumstances, you need to self-assess based on the current law. If you choose to anticipate new law in line with the announcement and it is not enacted, you may need to seek an amendment. For more information, see Administrative treatment of retrospective legislation. |
The government has announced proposed changes for study and training loans.
Repayment system changes
The government has proposed changes to the repayment system to take effect from 1 July 2025 subject to the passage of legislation.
- The minimum repayment threshold will change from $54,435 in 2024–25 to $67,000 in 2025–26.
- HELP repayments will only be calculated on the income above the new $67,000 threshold instead of the total annual income.
For more information, see the Department of Education websiteExternal Link.
20% loan reduction
The government has proposed a reduction to the balance of all study and training support loans by 20%, to take effect before 1 June 2025 subject to the passage of legislation.
For more information, see 20% reduction of student loan debtExternal Link on the Department of Education website.
Trade Support Loan name change
From 1 January 2024, a Trade Support Loan (TSL) is known as an Australian Apprenticeship Support Loan (AASL)External Link.
The name change was included in the Trade Support Loans Amendment Act 2023External Link that amends the Australian Apprenticeship Support Loans Act 2014External Link. It received Royal Assent in August 2023. This brought changes to the existing TSL program (which was introduced in 2014).
The TSL program provided income-contingent loans to eligible apprentices to help with everyday costs while completing their apprenticeships. The AASL program expands access to these loans to a broader range of apprentices and trainees, including non-trade occupations. A new Australian Apprenticeship Priority List replaces the TSL Priority List.
Early childhood, aged care and disability are examples of sectors that may benefit from this expansion.
For more information, go to the Department of Employment and Workplace Relations Australian Apprenticeship Support LoansExternal Link page.
HELP loan reduction for rural doctors and nurse practitioners
The HELP for Rural Doctors and Nurse Practitioners initiativeExternal Link applies from 1 January 2022. It gives doctors and nurse practitioners the opportunity to reduce their outstanding Higher Education Loan Program (HELP) loanExternal Link if they meet:
- the eligibility criteriaExternal Link
- their obligationsExternal Link to complete the required amount of eligible work in specified areas.
For more information, contact the Department of Education at veryremotehelp@education.gov.auExternal Link.