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> Is it stepped at all? Do you owe nothing before 50k and then once you cross that threshold you now owe money? That would seem to incentivise staying below tha
by mimhoff 8y ago
> Is it stepped at all? Do you owe nothing before 50k and then once you cross that threshold you now owe money? That would seem to incentivise staying below that threshold for a percentage of borrowers.
Once you earn over the threshold your HELP repayments apply to your entire income. So, yes, at low incomes you get a pretty significant tax increase when you cross the threshold. I think they should make it marginal like regular income tax is...
https://www.studyassist.gov.au/paying-back-your-loan/loan-repayment https://www.studyassist.gov.au/paying-back-your-loan/loan-re...
- angry_octet 8y agoTechnically you always owe the money, you just don't have to repay it when you have a low income. It is stepped in the rate of repayment -- it might be 2% of income at $50k and 8% at $100k. It certainly seems like your biggest raise ever when you pay it off.