Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Sarahbea(Newbie)Newbie
19 Apr 2023

Hi ATO


Could you please advise what needs to be done to make early repayments to avoid indexation on an active HECS/HELP debt that is still being accrued.


Let's say I am still studying, so am still accruing debt. As of 1 July 2022 I had a $10,000 balance but after completing my tax return in Oct 2022, I had a remaining balance of $5,000.


Since then, I have accrued an addition $8,000 in fees to the debt making my expected balance on 1 June 2023 $13,000.


As I understand it, indexation will be applied to the $5000 balance I had that is more than 11 months old, correct? If so, and I want to avoid indexation on this amount, will a voluntary contribution of $5,000 completed before 1 June 2023 achieve that? Or do I need to repay the whole balance of $13,000 in order to avoid indexation?


Thanks.


1,142 views
3 replies
1,142 views
3 replies

Most helpful response

Most helpful reply

DanielleATO(Community Support)Community Support
20 Apr 2023

Hi @Sarahbea,


You are correct!


The indexation is applied to the part of an accumulated study and training loan that has remained unpaid for more than 11 months, for:


  • Higher Education Loan Program (HELP)
  • VET Student Loan (VSL)
  • Student Financial Supplement Scheme (SFSS)
  • Student Start-up Loan (SSL)
  • ABSTUDY Student Start-up Loan (ABSTUDY SSL)
  • Trade Support Loan (TSL).

If you make a voluntary payment before the 1st of June paying out the account. There would be no indexation applied.

All replies

Most helpful reply

DanielleATO(Community Support)Community Support
20 Apr 2023

Hi @Sarahbea,


You are correct!


The indexation is applied to the part of an accumulated study and training loan that has remained unpaid for more than 11 months, for:


  • Higher Education Loan Program (HELP)
  • VET Student Loan (VSL)
  • Student Financial Supplement Scheme (SFSS)
  • Student Start-up Loan (SSL)
  • ABSTUDY Student Start-up Loan (ABSTUDY SSL)
  • Trade Support Loan (TSL).

If you make a voluntary payment before the 1st of June paying out the account. There would be no indexation applied.

Sarahbea(Newbie)Newbie
20 Apr 2023

Thanks Danielle, but when you say pay out the account do you mean I would have to pay out the full balance including any amount occurred in the 11months to 1 June? In other words, a payment only of the value subject to indexation would be insufficient?

Liked by Ben.C
DanielleATO(Community Support)Community Support
21 Apr 2023

Hi @Sarahbea,


I'm sorry for the confusion.


With indexation for 2023 financial year, if the study and training loan/s that have accumulated in those 11 months are paid. No indexation would be applied if paid before the 1st of June.


If you have previously had indexation applied to the account, that would still need to be paid. When you lodge your income tax return. If you earn over the compulsory repayment threshold and still have an amount owing for example indexation. As part of processing the return, the compulsory repayment will be applied to the account.


If you do not reach the compulsory repayment threshold, the amount of previous indexation will remain on the account.

Featured articles

20% reduction of HECS-HELP and other student debts

6 Feb 2026 · 3 min read time

Paying my HECS HELP student loan

13 May 2026 · 4 min read time

Linking your myGov account to the ATO

24 Aug 2025 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2069 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    529 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10399contributions

  2. Taxduck

    (Taxicorn)

    4761contributions

  3. PayrollDeanne

    (Taxicorn)

    2061contributions

  4. YellowPotato

    (Taxicorn)

    1352contributions

  5. YEP

    (Devotee)

    837contributions

Loading
How much to repay to avoid indexation on HELP debt? | ATO Community