HECS/HELP debt indexation changes

There are no further details contained in the Budget papers on the announced changes to the way that the indexation factor applied to HELP debts will be calculated.

Here is an outline of the recently proposed changes.

A student who receives a HELP loan under any of the student loan schemes has an “accumulated HELP debt” with the ATO. The loan is subject to yearly indexation, but is otherwise interest-free.