While there is no interest charged on HELP debt, there is an indexation added to the debt every year on June 1. This year there will be a significant increase in the rate to 7.1%, the highest we’ve seen since 1990.

Approximately three million Australians will be affected by the increase, most of which aged 20 – 29 years of age and it is expected that this increase will add an additional six month to the average repayment time.

Indexation rates for HELP debt

Year	Indexation rate
2023	7.1%
2022	3.9%
2021	0.6%
2020	1.8%

Some Australian students and graduates are considering clearing their HELP debt prior to the indexation increase to avoid the extra cost. It’s important that individuals assess the short-term and long-term impact of balancing significant debts, as HELP payments are irreversible and can have a major impact on one’s financial situation.

To view the current HELP thresholds and rates, see our HELP repayment thresholds and rates for 2022-23 article.

If you’re seeking advice on how to best manage your HELP debt, please contact us to speak with an AFS accountant.