Compulsory repayments of your study and training support loan are made through the income tax system.
You don't have to provide loan information in your tax return. If you have a loan when you lodge your tax return and your repayment income is above the minimum repayment threshold, we will work out your compulsory repayment and include it on your notice of assessment.
Your compulsory repayment rate increases as your income increases. The more you earn, the higher your repayment. Your compulsory repayment is based on your income alone – not the income of your parents or spouse.
You will not have to make a compulsory repayment if you have a spouse or dependants and if – due to low family income – you:
- are entitled to a reduction of the Medicare levy
- do not have to pay the Medicare levy.
If you do not have to make a compulsory repayment, you may ask your employer not to withhold additional amounts from your pay by completing the Medicare levy variation declaration form (NAT 0929).
You can also make additional voluntary repayments.
Advising your employer
You must advise your employer if you have a study or training support loan. Under the pay as you go (PAYG) withholding system, your employer will withhold an additional amount from your salary and wage income to cover your compulsory repayment.
Advise your employer by ticking the relevant box on one of the following forms that applies to your situation:
- If you're starting a new job, complete a Tax file number declaration (NAT 3092) and include your debt details at Question 11.
- If you are already working and being paid, complete a Withholding declaration (NAT 3093) and include your debt details at Question 6.
- When you pay off your loan in full, complete a new Withholding declaration (NAT 3093) to advise you no longer have a debt. Update your debt details at Question 6.
These forms are usually given to you by your employer or you can obtain one from the link below.
If you earn business or investment income
Pay as you go (PAYG) instalments is a system where you make regular payments towards your expected tax liability if you earn business or investment income. You pay your tax in instalments throughout the year rather than when you lodge your tax return.
If you are making PAYG instalments, we take your debt into account when working out your PAYG instalment amount and rate.
You can vary your instalment amount or rate to allow for your personal circumstances.
Compulsory repayments of your study and training support loan are made through the income tax system. If your income is above the repayment threshold, we will work out your compulsory repayment and include it on your notice of assessment.