If you were a university student that used the HECS or HELP programs to fund your tertiary studies then welcome to hell because this is the thorn that keeps twisting further into your side.
Over the past week you may have received an email in your inbox alerting you to some changes being made to the threshold for HECS/HELP repayments. If you immediately broke out into a cold sweat and shut down the email, then, same. But alas, folks we must confront these sticky parts of life which is why we have pulled together a lil’ explainer on what these updates mean for you and your funds.
What is the new HECS/HELP repayment threshold?
The bean counters over at the Australian Tax Office (ATO) have popped up to let us know they’ve raised the HECS-HELP repayment threshold for the 2034-24 financial year. If you earn below $51,549 you won’t have to give away any of your hard earned clams. This is a jump up from last year’s threshold of $48,361.
What do you need to do?
It’s important to let your employer know about your HECS-HELP debt in order to be properly indexed when it comes to your salary. If you’ve already done that, then your employer will withhold the necessary tax based on your income.
In addition to that you can make voluntary repayments (slay) or up the percentage that is taken out of your pay. This can all be done through your ATO account online.
What if you earn over the repayment threshold?
If you earn over the $51,549 threshold that means you’ll be waving a percentage of your salary goodbye into the abyss to chip away at your crippling debt. Here’s the breakdown:
Below $51,550: Nil
$51,550 — $59,518: 1.0%
$59,519 — $63,089: 2.0%
$63,090 — $66,875: 2.5%
$66,876 — $70,888: 3.0%
$70,889 — $75,140: 3.5%
$75,141 — $79,649: 4.0%
$79,650 — $84,429: 4.5%
$84,430 — $89,494: 5.0%
$89,495 — $94,865: 5.5%
$94,866 — $100,557: 6.0%
$100,558 — $106,590: 6.5%
$106,591 — $112,985: 7.0%
$112,986 — $119,764: 7.5%
$119,765 — $126,950: 8.0%
$126,951 — $134,568: 8.5%
$134,569 — $142,642: 9.0%
$142,643 — $151,200: 9.5%
$151,201 and above: 10%
In short there’s a lot of economical jargon to wade through but rest assured you’ll be able to continue about your day with the impending doom that you may take this debt to your grave. Enjoy the workforce and get your kicks where you can.
