AUSTRALIAN TAXATION OFFICE

HIGHER EDUCATION SUPPORT ACT 2003, AUSTRALIAN APPRENTICESHIP SUPPORT LOANS ACT 2014, STUDENT ASSISTANCE ACT 1973

Factor to Index an Accumulated HELP, AASL or Financial Supplement Debt 2025

I, Amanda Keeble, of the Australian Taxation Office, HEREBY NOTIFY, pursuant to section 140-20 of the Higher Education Support Act 2003, section 34 of the Australian Apprenticeship Support Loans Act 2014 and subsection 12ZF(7A) of the Student Assistance Act 1973 that 1.032 is the HELP, AASL and Financial Supplement debt indexation factor for 1 June 2025 to be used in working out accumulated HELP, AASL and Financial Supplement debts for the 2024/2025 financial year.

From 5 December 2024, as a result of the changes under the Universities Accord (Student Support and Other Measures) Act 2024, the way in which the HELP, AASL and Financial Supplement Debt has changed.

In accordance with the amendments to section 140-10 of the Higher Education Support Act 2003, section 32 of the Australian Apprenticeship Support Loans Act 2014 and subsection 12ZF(6) of the Student Assistance Act 1973, the HELP, AASL and Financial Supplement debt indexation factor is the lower of the Consumer Price Index (CPI) indexation factor and the Wage Price Index (WPI) indexation factor worked out to three decimal places. Further amendments to section 140-10 of the Higher Education Support Act 2003, section 32 of the Australian Apprenticeship Support Loans Act 2014 and subsection 12ZF(6) of the Student Assistance Act 1973 with effect on and from 1 June 2025, require the indexation factor to be worked out with reference to the December quarter in that financial year.

The HELP, AASL and Financial Supplement debt indexation factor with effect on and from 1 June 2025 is worked out to three decimal places using the formula:

the sum of the CPI index number for the December 2024 quarter and the CPI index numbers for the three immediately preceding quarters divided by the sum of the CPI index number for the December 2023 quarter and the CPI index numbers for the three immediately preceding quarters,

where CPI index number, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the eight capital cities, published by the Australian Statistician in respect of that quarter.

The CPI indexation factor is 1.032 and the effective percentage increase is 3.2%. The WPI indexation factor is 1.037 and the effective percentage increase is 3.7%. The CPI indexation factor is the lower.

Amanda Keeble

Assistant Commissioner

Dated this 8 April 2025