Paying off HECS Debt before Indexation (1 June)

Question

 · Accepted Answer

BlakeATO · Answer

If you pay off the remainder of your loan balance before 1 June, then indexation won't be applied if your balance is nil. You also won't have a compulsory repayment when you lodge your next tax return. If you're talking about your current return, indexation isn't applied to amounts once they become a compulsory repayment on your income tax account. This is because they then become an income tax debt, not a HELP loan. Instead, if you don't pay the amount by the due date, you're liable for general interest charges on the amount. Check out paying your HECS HELP student loan (https://community.ato.gov.au/s/article/a079s0000009GnG/paying-my-hecs-help-student-loan) for more info.

Explore tax & super topicsExplore tax & super topics

About usAbout us