FAQs for HELP Indexation Credit

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How was my HELP debt indexed on 1 June 2024?

Indexation is applied to HELP debts on 1 June each year.

In the May 2024 Budget, the Government announced changes to HELP indexation to be based on the lower of Consumer Price Index (CPI) or Wage Price Index (WPI), with effect from 1 June 2024.

Indexation was applied on 1 June 2024 at the rate of 4.7%. This will now be retrospectively changed to 4%. 

For more information about backdated indexation changes for 1 June 2023 and 1 June 2024 and how these changes will benefit you, visit HELP Indexation Credit Estimator.

  • Indexation was applied on 1 June 2023 at the rate of 7.1%. This will be retrospectively changed to 3.2%
  • Indexation was applied on 1 June 2024 at the rate of 4.7%. This will be retrospectively changed to 4%.

You can find out about your estimated indexation credit by using this HELP indexation credit estimator.

  • Indexation maintains the real value of the education you received so that no matter how long it takes to repay, a student would repay an amount that is more like the actual cost of that education today. 
  • Indexation is when your HELP debt is adjusted to reflect the changes in the cost of living. This means your HELP debt is likely to grow.
  • Indexation is applied to your HELP debt on 1 June each year.
  • CPI is the Consumer Price Index. It is an economic indicator which measures changes in the prices of goods and services purchased by households across the country. 
  • The Government uses CPI for a range of purposes, including to monitor inflation levels and adjust the values of fixed loans and payments such as pensions. Further information is available from the Australian Bureau of Statistics (ABS).
  • WPI is the Wage Price Index. It is an economic indicator which measures changes in the price of wages and salaries in the Australian labour market.
  • It is the main indicator used to measure growth in wages across the economy. Further information is available from the Australian Bureau of Statistics (ABS)
  • Both CPI and WPI are calculated by the Australian Bureau of Statistics (ABS) based on measuring movements in the economy and labour market.
  • CPI measures the movement in the price of a fixed basket of goods and services and WPI measures the movement in wages, and the price employers pay for labour. 
  • Both CPI and WPI are measured across economic quarters of March, June, September and December i.e. every three months. 
  • CPI numbers are published the month following the reference quarter (e.g. the March quarter 2024 CPI number was released at the end of April 2024) whereas the WPI numbers are published seven weeks after the end of each quarter (e.g. the March quarter 2024 WPI number was released in May 2024).
  • The Government introduced legislation to cap HELP indexation at the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) to ensure indexation never rises faster than wages in the future.
  • Now this legislation has been passed by both Houses of Parliament, the Government will provide an indexation credit. 
  • If your debt was indexed in 2023 or 2024, this means you will receive a credit for the difference between the current indexation rate and the new indexation rate. You do not need to apply for this credit. The Australian Taxation Office (ATO) will automatically apply the indexation credit.
  • If you repaid your HELP debt after 2023 or 2024 indexation was applied, the credit would be via a refund to your bank account (assuming there are no outstanding tax debts).
  • A person with an average HELP debt of $26,500 in 2023 will receive a credit of up to $1,190. 
  • This is the difference between the 2023 CPI rate of 7.1% and the WPI rate of 3.2%, and the 2024 CPI rate of 4.7% and the WPI rate of 4.0%.
  • You do not need to do anything to receive the indexation credit. 
  • The Australian Taxation Office (ATO) will automatically calculate your indexation credit and apply this to your ‘HELP debt account’.
  • If you completely repaid your HELP debt after 2023 or 2024 indexation was applied, the credit would be via a refund to your bank account (assuming there are no outstanding tax debts).
  • Now the legislation is passed, the Australian Taxation Office (ATO) will automatically apply the indexation credits.
  • If you had outstanding HELP debts that were indexed on 1 June 2023, you will receive an indexation credit for 2023.
  • If you have outstanding HELP debts that were indexed on 1 June 2024, you will receive an indexation credit for 2024. 
  • If you had outstanding HELP debts that were indexed on 1 June 2023 and 1 June 2024 you will receive an indexation credit for both years. 
  • Note: Other transactions (such as loan reversals or waivers) on your account may increase or decrease the amount of indexation (and therefore your taxation credit).
  • The Australian Taxation Office (ATO) will automatically apply an indexation credit for those with an outstanding HELP debt that was indexed on 1 June 2023 and/or 1 June 2024. 
  • Indexation credits for 2023 and 2024 will be applied to your ‘HELP debt account’. 
  • If you paid off your outstanding HELP debt after 1 June 2023 or 1 June 2024, you will still receive an indexation credit.
  • You will not need to wait until you lodge your next tax return to receive the indexation credit. 
  • If your ‘HELP debt account’ balance is less than zero as a result of the reduction, and you do not have other primary tax or Commonwealth debts, the credit will be refunded via the usual ATO refund mechanisms which is to your nominated financial institution account as recorded by the ATO.
  • Now the legislation is agreed by both Houses of Parliament, the Australian Taxation Office (ATO) will automatically apply an indexation credit for those individuals with an outstanding HELP debt that was indexed on 1 June 2023 and/or 1 June 2024. 

No, but you will be able to check your HELP debt via myGov.

No, but you will be able to check your HELP debt via myGov.

  • If you have paid off your outstanding HELP loan since 1 June 2023, you will still receive an indexation credit. 
  • This will become a tax credit if you have no other outstanding student loans. 
  • You will not need to wait until you lodge your next tax return for the credit to be applied. 
  • You can view or update your current nominated bank account for refunds by logging in through the myGov portal.
  • If you repaid your outstanding HELP debt in full before indexation of 7.1% was applied in 2023, you will not receive an indexation credit. 
  • This is because HELP debts prior to 1 June 2023 were not affected by the 7.1% indexation. 
  • HELP debts were indexed in previous years at the rates of 3.9% in 2022 and 0.6% in 2021.

No, the indexation credit will be applied against your existing HELP debt to reduce your outstanding ‘HELP debt account’ balance.

  • Once your indexation credit is processed, it will be applied to reduce your Australian Taxation Office (ATO) ‘HELP debt account’ balance. 
  • If your ‘HELP debt account’ balance is less than zero as a result of the reduction, and you do not have other primary tax or Commonwealth debts, the credit will be refunded via the usual ATO refund mechanisms which is to your nominated financial institution account as recorded by the ATO. 
  • You can view or update your current nominated bank account for refunds by logging in through the myGov portal.
  • If you have recently paid off your HELP debt, any credit available on your ‘HELP debt account’ following the application of the indexation credit will be transferred to your Income Tax Account. 
  • If after the credit is applied your Income Tax Account has a credit balance, you will receive a refund to your nominated financial institution account as recorded by the Australian Taxation Office. 
  • You can view or update your current nominated bank account for refunds by logging in through the myGov portal.
  • Yes. 
  • The indexation credit will revert outstanding HELP debts to what they would have been had indexation been applied at the rate of 3.2% on 1 June 2023 and 4.0% on 1 June 2024.
  • The Australian Universities Accord Final Report, released on 25 February 2024 made 47 recommendations and targets to reform higher education, including to make HELP fairer and simpler. 
  • Recommendation 16(d) specifically recommended setting the HELP indexation rate to the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI). 
  • The Government has listened to the concerns of students and to the recommendation of the Accord and will legislate to make HELP simpler and fairer.
  • The recent changes by Government will cap the HELP indexation at the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI).
  • This will be backdated to 1 June 2023, retrospectively lowering the HELP indexation rate for 2023 from 7.1% to 3.2%, with a resulting indexation credit to be applied to individual’s accounts.