HELP Repayment Threshold to be reduced from 1 July
2016.
New minimum repayment threshold will be set at 90% of
the minimum threshold that would otherwise have applied
for the 2016/17 year (approx. $50K).
A new minimum repayment rate of 2% will apply to
debtors with incomes that have been caught by the
reduced threshold.
There are no other changes to the repayment rates.
Currently HELP Debts are indexed to CPI. From 1 July
2016 indexation of HELP Debts will be linked to a rate
equivalent to the yield on 10 year bonds issued by the
Australian Govt, capped at 6%.
For the 2013 year the CPI applied to HELP Debts was 2%
where as the 10 year bond rate was 3.76%.
