Making repayments
You can make voluntary repayments at any time to reduce the balance of your loan.
You may still have to make a compulsory repayment or pay an overseas levy if, after making your voluntary repayment:
- you still have an outstanding loan
- your repayment income is above the minimum repayment threshold.
Voluntary repayments are in addition to compulsory repayments/overseas levy and are not refundable.
Best time to make a voluntary repayment
If you plan to pay off your total loan balance with a voluntary repayment, it's best to make your repayment before you lodge your tax return or worldwide income.
If you lodge your tax return or worldwide income before your voluntary repayment is credited to your account, a compulsory repayment or overseas levy may be included on your notice of assessment. You may also benefit if you make a voluntary repayment (which will reduce the loan amount), before indexation is applied on 1 June.
If you intend to make a voluntary repayment before indexation is applied, it is important to allow enough time for the payment to be received and processed by us before 1 June.
Payments made electronically or at Australia Post can take up to 4 business days from the day you make the payment, to be received by us and to appear on your ATO account.
If you mail a cheque or money order to us, you will need to take into account postal service deliveryExternal Link. Once we receive your payment, it may take a further 4 business days to be allocated to your ATO account. Indexation will apply if the payment is not received and processed in time. Refer to ‘indexation’ to see its impact on the loan.
Note: Don't make voluntary repayments to us before you have incurred a loan.
For more information see Study and training loan indexation rates.
How to make a voluntary repayment
We offer a range of payment options both in Australia and overseas. Our preferred payment methods are:
- BPAY® (registered to BPAY Pty Ltd ABN 69 079 137 518)
- credit card.
If you pay using BPAY, credit card or direct credit, you will need your payment reference number (PRN).
For more information see:
Salary packaging
Some people use salary packaging arrangements with their employers to pay off their loans faster by making voluntary repayments.
If you make such an arrangement, you must:
- make your voluntary repayments by BPAY, credit card or direct credit
- stop making repayments as soon as you have paid off your loan.
Voluntary repayments made through salary packaging are in addition to compulsory repayments. If your income is above the minimum repayment threshold for an income year, you will still need to make a compulsory repayment. This will be included in your notice of assessment.
Entering into a salary sacrifice arrangement may result in your payer providing a fringe benefit to you. You should seek financial advice before entering into this arrangement.
For more information see Salary sacrificing for employees.
Tax deductibility
Any voluntary repayments made by you, or by someone else other than your employer, are not tax deductible. If your employer makes voluntary repayments on your behalf, they may be able to claim a tax deduction. Your employer may also be liable for fringe benefits tax (FBT) on the repayments.