Indexation is charged on amount owing as of previous year’s balance. So if indexation is applied 1 June and my compulsory repayments don’t get processed by ATO until after 1 July, do I get charged indexation for the previous balance? I’m due to pay my HECS this year (with an additional voluntary repayment), but I want to know if I’m going to paying for indexation on the last balance due to ATOs insane 1 June indexation timeframe and the fact that my compulsory repayments aren’t process until tax time. Does this mean to avoid the 1 June indexation that I have to pay off the entire balance in one lump sum, even though my employer has paid off 90% of the balance already? I find it hard to believe that the ATO could backhandedly index me on an old balance when I will pay the entire amount before 1 June (but employer withheld contributions aren’t processed until tax time).
2,267 views
1 replies
Hello @Pallmall01,
That's correct. Any amount owing on the 1st of June will receive indexation. If you are trying to pay off your debt, do it several days ahead of the 1st of June indexation. We only manage the collection of loan repayments for the Department of Education.
It's not until we've processed your tax return if a compulsory repayment is required. If you have anymore questions you can check out the study and training support loans information page or the study assist website.
All replies
Hello @Pallmall01,
That's correct. Any amount owing on the 1st of June will receive indexation. If you are trying to pay off your debt, do it several days ahead of the 1st of June indexation. We only manage the collection of loan repayments for the Department of Education.
It's not until we've processed your tax return if a compulsory repayment is required. If you have anymore questions you can check out the study and training support loans information page or the study assist website.
Featured articles
3 June 2026 · 3 min read time
13 May 2026 · 4 min read time
24 Aug 2025 · 3 min read time