HELP Debt repayment may be lowered to $45,000
The Turnbull Government is now looking to reduce the repayment threshold for university graduates by more than $10,000, which means anyone earning more than $45,000 would have to make compulsory contributions.
Currently for the 2018 Financial Year the compulsroy repayment threshold begins at $55,874 - $62,238. The repayment rate of that bracket of income is fixed 4% of income. The repayment percentage increases with income earned.
Industry groups are concerned that this will put additional pressure on young people and further reduce their ability to get on the property ladder. Any amendments to this legislation could dramatically affect thousand of Australians this year. GMD will monitor this commentary and will consider any affects on clients come tax planning this year in June 2018.