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.
| 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)
- Is the income threshold, below which no repayment of your HELP debt is required: $51, 957 or ‘repayment income’?
- Is the lowest rate, of repayment, 2% of ‘repayment income’?
- Is the highest rate of repayment, 7% of ‘repayment income’?
- Does the highest rate of repayment cut in at $107,214 of ‘repayment income’?
- 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?
