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Re: Indexation

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MK1
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Hi,

I just have a question regarding indexation...

 

In the new Financial Year with the new repayment thresholds I will now need to start paying of the minimum repayments.

 

I will be paying a minimum of $460 of compulsory repayments a year. However, if I pay $460 off in one year through my tax, and the indexation gets added on, say for example $410 for the year, does the ultimately mean I will have only paid off $50 off my debt in that one Financial year?

 

If so, that seems like it will then take ALOT longer for me to repayment my debt. I do plan on making my own voluntary repayments, however would just like to know if the above would be the case if I was to not.

 

Thsnk you.

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ATO Certified

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Hi @MK1

 

Welcome to our Community!

 

Essentially speaking yes, indexation is added to your study loan based on the total account balance as at 1 June each year. Keeping in mind you can choose to make voluntary repayments in addition to any compulsory repayments you're required to make. 

 

If you have further questions regarding your study and training loan account, you can phone us on 13 28 61 between8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

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Taxicorn

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Are you talking about a Help Debt?

 

If so be aware that when your employee withholds Help Debt repayment it gets sent to the ATO and they sit on it UNTIL you lodge your tax return, then they work out if and how much to pay off the debt.

 

Any surplus will either go towards a possible overall tax debt, a Centrelink debt or returned to you.

 

 

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ATO Certified

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Hi @MK1

 

Welcome to our Community!

 

Essentially speaking yes, indexation is added to your study loan based on the total account balance as at 1 June each year. Keeping in mind you can choose to make voluntary repayments in addition to any compulsory repayments you're required to make. 

 

If you have further questions regarding your study and training loan account, you can phone us on 13 28 61 between8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

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