The Government is proposing changes to reduce the indexation that is applied to HELP (and other student loan schemes).
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How was my HELP debt indexed on 1 June 2024?
Indexation is applied to HELP debts on 1 June each year.
In the May 2024 Budget, the Government announced changes to HELP indexation to be based on the lower of Consumer Price Index (CPI) or Wage Price Index (WPI).
Indexation was applied on 1 June 2024 at the rate of 4.7%. Once legislation passes, indexation will be retrospectively changed to 4%.
For more information about backdated indexation changes for 1 June 2023 and 1 June 2024 and how these changes will benefit you, visit FAQs for HELP Indexation Credit.
The proposed change to indexation is to apply the lower of the Consumer Price Index or the Wage Price Index, with effect from 1 June 2023.
After the passage of the relevant legislation, the revised indexation rates will be automatically applied by the Australian Taxation Office to your loan.
This means that it is likely that you will receive an indexation credit that will reduce your outstanding loan. Once legislation passes, the indexation rate applied on 1 June 2023 of 7.1% will be reduced to 3.2% and the indexation rate applied on 1 June 2024 of 4.7% will be reduced to 4%.
Use the estimator to see the HELP indexation credit amount for 2023 and 2024 that could be applied to your HELP loan and see the FAQs for more information.