Want to know more about indexation and how it will impact on your HELP debt?
We’ve summarised the basics here but if you want to learn more about indexation, visit the loan increases and indexation page.
What's on this page
What is indexation?
HELP debts are indexed by the Australian Taxation Office (ATO) each year.
Like interest, indexation means your debt grows over time.
This means the amount you repay in total is likely to be more than the original amount of the loan.
Why is indexation applied to my loan?
Indexation is added to your HELP debt to reflect the changes in the cost of living. This is done to ensure education maintains its value over time, like other goods and services.
How much indexation will be applied to my debt?
This is legislated under the Act and is applied on 1 June each year to the portion of a HELP debt that is 11 months or older.
The rate of indexation changes each year and until recently was based solely on the Consumer Price Index (CPI).
Legislation was passed in November 2024 to change the way HELP indexation is calculated to use the lower of the CPI or Wage Price Index (WPI). This change has been backdated to 1 June 2023.
You can check the current and previous rates on the Australian Taxation Office (ATO) website.
When is indexation applied?
Indexation is applied on 1 June each year.
Indexation is only applied to HELP debts that are older than 11 months. The age of your HELP debt is based on the census date of the HELP loan.
Did you know?
You can make a voluntary repayment before 1 June to accrue a smaller amount of indexation. You should make any voluntary repayment at least 5 business days before 1 June. You can find out more about voluntary repayments on the ATO website.
Who applies indexation?
The ATO is responsible for applying indexation to HELP debts.
Need further help?
The ATO is responsible for the management of HELP debts, including applying indexation. You can check your HELP debt information in the ATO Online Services via myGov or by calling the ATO directly on 13 28 61.