• Voluntary repayments

    You can make voluntary repayments at any time to reduce the balance of your debt.

    You may still have to make a compulsory repayment if, after making the voluntary repayment:

    • you still have a debt
    • your repayment income is above the minimum compulsory repayment threshold.

    Voluntary repayments are in addition to compulsory repayments and are not refundable.

    From 1 January 2017 the voluntary repayment bonus no longer applies.

    See also:

    Best time to make a voluntary repayment

    If you plan to pay off your total loan balance with a voluntary repayment, it's best to make the repayment before you lodge your tax return.

    If you lodge your tax return before your voluntary repayment is credited to your account, a compulsory repayment may be included on your notice of assessment. You may also benefit if you make a voluntary repayment before indexation is applied on 1 June. If you intend to make a voluntary repayment before indexation is applied, it is important to allow enough time for the payment to be received and processed by us before 1 June.

    Note: Don't make voluntary repayments to us before you have incurred a loan.

    See also:

    How to make a voluntary repayment

    We offer a range of payment options both in Australia and overseas. Our preferred payment methods are BPAY® and credit card.

    If you pay using BPAY, credit card or direct credit, you will need your payment reference number (PRN).

    Note: Currently, you are not able to access a PRN through our online services. For alternate ways to get your PRN, see other payment details.

    From 1 January 2017 the voluntary repayment bonus no longer applies.

    See also:

    Salary packaging

    Some people use salary packaging arrangements with their employers to pay off their loans by voluntary repayments. If you make such an arrangement, you must:

    • make your voluntary repayments by BPAY, credit card or direct credit
    • stop making repayments as soon as you have paid off your loan.

    Voluntary repayments made through salary packaging are in addition to compulsory repayments. If your income is above the minimum repayment threshold for an income year, you will still need to make a compulsory repayment which will be included in your notice of assessment.

    Entering into a salary sacrifice arrangement may result in your payer providing a fringe benefit to you. You should seek financial advice before entering into this arrangement.

    See also:

    Tax deductibility

    Any voluntary repayments made by you, or by someone else other than your employer, are not tax deductable. If your employer makes voluntary repayments on your behalf, they may be able to claim a tax deduction. Your employer may also be liable for fringe benefits tax (FBT) on the repayments.

    Last modified: 07 Feb 2017QC 44860