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Changes to the HECS-HELP discount and voluntary repayment bonus

Changes to the HECS-HELP discount and voluntary repayment bonus

13 September 2016

From 1 January 2017, the Government will remove the upfront HECS-HELP discount of 10 per cent and the voluntary HELP repayment bonus of five per cent.

The current HECS-HELP program allows eligible Commonwealth supported students to defer their student contribution and repay it later through the taxation system.

Commonwealth supported students who are eligible for HECS-HELP and elect to fully pay, or part pay $500 or more of, their student contribution amount upfront currently receive a discount of 10 per cent. Likewise, people who have a HELP debt and make a voluntary repayment of $500 or more towards that debt currently receive a bonus of 5 per cent.

However, from 1 January 2017 we will see the removal of the upfront discount and the bonus for voluntary repayments.

Therefore, if you have an HECS-HELP debt and are interested in making a voluntary repayment in excess of $500, we suggest making this prior to the discount cut-off date of 31 December 2016.

If you have any questions in regard to your HECS-HELP debt, speak with your local Boyce accountant.

Source: Australian Government Study Assist http://studyassist.gov.au/sites/studyassist/news/pages/changes-to-hecs-help-discounts-and-voluntary-repayment-bonus

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