As an example, let's assume I had a HECS-HELP loan balance after completing my FY22 tax return of $15,000. After lodging my FY22 tax return, I have not made any voluntary / non-compulsory repayments to my HECS-HELP loan and the balance as at 30 April 2023 was therefore still $15,000.
Compulsory repayments have been progressively deducted from my salary since lodging my FY22 tax return, but I recognise that these repayments are not credited to the loan until I lodge my FY23 tax return after 1 July 2023.
So if I want to fully pay off the remaining $15,000 HECS-HELP debt and avoid the $15,000 being indexed, when do I need to make the payment to the ATO? Is it on or before 30 June 2023, or is it on or before 31 May 2023?
Your website specifically says that "indexation is applied to the part of an accumulated study and training loan that has remained unpaid for more than 11 months". This would imply that the HECS-HELP balance would be indexed on 1 July 2023, but based on the loan balance as at 31 May 2023.
The rationale being that 31 May 2023 is 11 months after the HECS-HELP loan was indexed on 1 July 2022.
Your website and other responses on the atocommunity have been very confusing on this matter.
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