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08Nov

Higher Education Loan Program (HELP) indexation rate capped.

08 Nov, 2024 | All articles, General | Return|

The Government is proposing changes to reduce the indexation that is applied to HELP (and other student loan schemes).

The government announced that it will cap the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or Wage Price Index (WPI). This change will take effect when it becomes law.

This relief will be backdated to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other study or training support loan accounts that existed on 1 June 2023.

The Department of Education have released:

Indexation was applied based on the CPI on 1 June 2023 and 1 June 2024. After the law has changed, the ATO will process adjustments to reflect the lower indexation amounts for these years and credit the amount to your study or training support loan. You don’t need to do anything.

Where your study loan is less than $0 after the adjustment, you may receive a refund for the excess amount. We won’t know who gets a refund until the credits are processed. Any refund you receive will be offset against any outstanding income tax debt you have.