Annual indexation update

The changes to annual indexation for study and training loans has been legislated, with indexation of the loans based on the lower value of either the Consumer Price Index (CPI) or the Wage Price Index (WPI).

This change has been backdated to indexation applied from 1 June 2023. If clients had a study loan indexed on 1 June 2023 or 1 June 2024, the credits will be processed and applied automatically.

Notably, if you’ve paid off your study loan once the credit has been applied, a refund may be generated. If this is the case, please check your bank account details are up to date with the ATO or with our office.

For additional information please follow the link: Changes to indexation

Repayment threshold and once-off reduction update

The Government also recently announced changes to the minimum repayment threshold for HELP and student loans, increasing from $54,435 in 2024-25 to $67,000 in 2025-26.

Further, HELP and other student loans will be reduced by 20%, with a one-off reduction on 1 June 2025. The Australian Tax Office (ATO) will automatically apply the reduction before indexation is applied to outstanding HELP balances.

Both changes to the minimum repayment threshold and the one-off 20% reduction require the successful passage of the legislation. We will keep you updated on their progress and advise of any action required. Should you require any further information, please access the following: Making student repayments fairer