Increased Threshold For Compulsory Repayments

WEB 2022-2023 Changes to Repayment Thresholds and Rates Announced

Increased Threshold for Compulsory Repayments

The Australian government has announced an increase in the income thresholds for compulsory Higher Education Loan Program (HELP) repayments for the 2023-24 financial year. This means that some individuals who were previously required to make compulsory repayments will no longer have to do so.

Updated Repayment Thresholds and Rates

• Repayment Threshold Increase: The threshold for compulsory HELP repayments has been raised to $48,367 for the 2023-24 financial year, up from $47,014 in the previous year.
• Interest Rates Remain the Same: Interest rates on HELP loans will remain the same as in 2022-23, with the Base Rate set at 1.01% (plus 1 percentage point for TSL loans).

What This Means for Borrowers

The increased threshold means that many individuals who earn less than $48,367 will no longer be required to make compulsory HELP repayments. This is expected to benefit students and graduates who are just starting out in their careers and may be struggling financially.

For those who are still required to make repayments, the interest rates on their loans will remain unchanged. However, they may be eligible for a reduction in their monthly repayments if their income has decreased since the last financial year.

The changes to HELP repayment thresholds and rates will take effect from July 1, 2023.