When your repayment income is above the minimum repayment threshold for any particular year, the Tax Office will calculate your compulsory repayment for that year and include it in your income tax notice of assessment. The repayment thresholds are adjusted each year to reflect any change in average weekly earnings. Table 4 contains the repayment thresholds and repayment rates for income earned during the 2006–07 income year.
Table 4 - 2006-07 repayment thresholds and repayment rates
| For repayment income in the range: |
Percentage rate to be applied to repayment income: |
| Below $38,149 |
Nil |
| $38,149–$42,494 |
4% |
| $42,495–$46,838 |
4.5% |
| $46,839–$49,300 |
5% |
| $49,301–$52,994 |
5.5% |
| $52,995–$57,394 |
6% |
| $57,395–$60,414 |
6.5% |
| $60,415–$66,485 |
7% |
| $66,486–$70,846 |
7.5% |
| $70,847 and above |
8% |
Your compulsory repayments increase as your repayment income increases - the more you earn, the higher your repayment. Your compulsory repayment is based on your income alone, not the income of your parents or spouse. You must start repaying your debt when your repayment income is above the minimum repayment threshold, even if you are still studying.
Example
|
Joshua’s taxable income for the 2006–07 income year is $40,420. In his tax return, he claimed a net rental loss of $1,250, had a total reportable fringe benefits amount of $3,560 and an exempt foreign employment income amount of $2,580. Joshua’s repayment income is $40,420 + $1,250 + $3,560 + $2,580 = $47,810. Joshua’s compulsory repayment for 2006–07 is $47,810 x 5% = $2,390.50.
If the calculated repayment amount is more than the balance of your accumulated HELP debt, you only pay the balance.
|
Return to the Top of the page