The ATO has released the repayment thresholds and rates for 2018-19 for the compulsory repayment of Higher Education Loan Program (HELP) debts and Student Financial Supplement Scheme (SFSS) debts.

HELP repayment thersholds and rates 2018-19
Repayment income* Repayment rate
Below $51,957 Nil
$51,957 – $57,729 2%
$57,730 – $64,306 4%
$64,307 – $70,881 4.5%
$70,882 – $74,607 5%
$74,608 – $80,197 5.5%
$80,198 – $86,855 6%
$86,856 – $91,425 6.5%
$91,426 – $100,613 7%
$100,614 – $107,213 7.5%
$107,214 and above 8%
*Repayment income = Taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

SFSS repayment thresholds and rates

The SFSS repayment thresholds and rates for 2018-19 are:

  • Repayment income below $51,957 – repayment rate is Nil.
  • Repayment income $51,957 to $64,306 – repayment rate is 2%.
  • Repayment income $64,307 to $91,425 – repayment rate is 3%.
  • Repayment income $91,426 and above – repayment rate is 4%.

FJM 17.7.18

[ATO website: HELP Information; LTN 132, 12/7/18; Tax Month – July 2018]

 

Comprehension questions (answers available)

  1. Is the income threshold, below which no repayment of your HELP debt is required: $51, 957 or ‘repayment income’?
  2. Is the lowest rate, of repayment, 2% of ‘repayment income’?
  3. Is the highest rate of repayment, 7% of ‘repayment income’?
  4. Does the highest rate of repayment cut in at $107,214 of ‘repayment income’?
  5. Is ‘repayment income’ Taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income?

[answers:1.yes;2.yes;3.no(8%);4.yes;5.yes]

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