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Indexation rates for 2018-2019 on HELP Loan

Newbie

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Hello,

Can anyone confirm if the indexation rate for HELP Debt, 2018-2019 is 1.9%?

 

I can only find 1.9% for 2018 but I'm not sure if that is the same for 2019.

 

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ATO Certified Response

Community Moderator

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Hi @itsakat

 

The indexation rate for 2019 is calculated after the release of the March 2019 consumer price index (CPI) by the Australian Bureau of Statistics. The March 2019 CPI is due to be released on the 24th April according to the Australian Bureau of Statistics.

 

Our web content will be updated shortly after the rate for 2019 is released.

 

Hope this helps! Thanks, Nate

 

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Most helpful response

ATO Certified Response

Community Moderator

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Hi @itsakat

 

The indexation rate for 2019 is calculated after the release of the March 2019 consumer price index (CPI) by the Australian Bureau of Statistics. The March 2019 CPI is due to be released on the 24th April according to the Australian Bureau of Statistics.

 

Our web content will be updated shortly after the rate for 2019 is released.

 

Hope this helps! Thanks, Nate

 

I'm new

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The March CPI rate is 1.9%.
Can you please post the calculation as I understand it takes the past 2 years into account.

I'm new

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@NateATO wrote:

Hi @itsakat

 

The indexation rate for 2019 is calculated after the release of the March 2019 consumer price index (CPI) by the Australian Bureau of Statistics. The March 2019 CPI is due to be released on the 24th April according to the Australian Bureau of Statistics. happy wheels

 

Our web content will be updated shortly after the rate for 2019 is released.

 

Hope this helps! Thanks, Nate

 


Thanks for sharing....It is helpful...! 

Former Community Support

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Hi @itsakat,

 

I have escalated your request to obtain the indexation rates and will advise you shortly.

 

Thanks for your patience, SueO

Former Community Support

Replies 3

Hi @itsakat,

 

The indexation factor for HELP, TSL and financial supplement debts is 1.018 and the effective percentage increase is 1.8% for 1 June 2019.

 

This was published in the Government notices gazette on the 15 May 2019, and our website will be update with this information shortly.

 

I hope this helps, SueO.

Newbie

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I see two sources that show March to March CPI was 1.3%

https://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0

https://www.ato.gov.au/Rates/Consumer-price-index/

 

Does the ATO instead use the December to December CPI figure to index HECS debts?

ABS December

 

This would explain the 1.9% used last year (link to rates) but why then wait to release the official figure until after the March CPI figures when it is published in January by the ABS? Could you confirm where the ATO source their CPI figure.

 

 

 

 

 

Former Community Support

Replies 1

Hi SamH,

 

The indexation figure uses a formula over two years that includes the latest March CPI- which is then applied to the account on June 1.

 

The calculation sums the latest 4 index numbers that include March 1 and divides this by the previous year’s 4 index numbers to arrive at the indexation factor for the loan balance.

 

You can find more information about Study-and-training-loan-indexation-rates for a summary of recent indexation rates on our website.

 

Thanks, JodieH.

Devotee

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not only didn't they say there would be a interest or a fee...
the 20% up-front surcharge fee, that adds to your total loan (now 25% I think)...
then gets interest as you mentioned variable interest of 1.9%... and sure lets call it indexation,
but if it acts like interest and looks like interest... it is interest ontop of a flatrate fee you've already stealthily been charged that was put into place to cover indexation for the estimated number of years it would take you to repay. or on average the number of years it takes people to repay. 

so if it isn't that, then it is to cover 'interest' for the estimated number of years it would take someone to pay and the average yearly interest that would accrue for the average person.


it is an actuary helping them to cover people who don't earn enough income to repay... for many years... which ends up being... an upfront fee so they can say they don't charge interest, that then gets interest put on it and all you owe once more... as indexation. so their solution is to double fee you on a loan for education that used to be free. and in the nature of things corporations do.. call it what it isn't out of habit of obfuscation.. so as it really doesn't help it is called a HELP loan (interest free mind you Smiley Wink.

just like the SMART mesh network, sounds intelligent right? 

all this really teaches people is that it costs money to be educated, and assumes you get money for being intelligent in return; however, you don't, you get money for being conditioned into a middle class mind-set of subservience. so that you're comfortable doing this to the next lot of people, so a company can make profit the only way they seem to be able to these days... aka cutting ethical corners... aka costs. 

It is like.. if your company has a by-product they would need to pay to dump, like flouride from aluminium production, why pay to dump it... when you can find some niche function it could potentially have... and market it as that, and sell it to the government to force consumers to bare the cost of... again... twice.

If this is to cover indexation, then it should decrease the amount owing, because your money is worth less now, and the minimum wage hasn't increased. And why would they want to update the cost of something from the past to the present which is subject to obsolescence.. such as the software you learned on, the course material is no longer as relevant. etc


A group of uni-students told me... in their final year, their lecturer stopped showing up and just told them... everything they were taught had just become redundant. Sure anacdotal, but I've heard similar things from many different people studying in many different fields. 

If the product you are given has become obselete in the future, why should it cost you future money, on a wage that pays you less.




and the reason this mentality makes sense... is because this is a government whose trend has been to sell their buildings to make themselves look good on the books in one year.... that they are then forced to rent those same buildings back indefinetly, thus making the next government look bad in comparison carrying the debt/cost/sink. 

we are no longer ran by public servants, we are ran by corporations and private enterprise... and I personally think government has been the victim to corporate enterprise for decades... and them losing the battle, is us losing the battle.

now we get public servants, in high ranks telling corporations "we can't wait to sell you private information of what people do in their homes!, how exciting for the economy this will be". SMART right?