From 1 June, study and training loan balances will be indexed at 2.8%. Indexation applies to the outstanding balance and is based on the lower of the Consumer Price Index or the Wage Price Index. Now is a timely opportunity to remind clients they can reduce their loan balance before indexation applies.
To ensure a voluntary repayment is processed in time, clients need to factor in payment processing. The ATO recommend that all voluntary repayments are made by 26 May. BPAY or credit card are the quickest and most reliable methods for meeting the deadline.