SFSS – Student Financial Supplement Loan – Repayment Thresholds and Rates 2024
The Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for tertiary students to help cover their expenses while they studied
The SFSS closed on 31 December 2003 and no new loans have been issued. Existing Financial Supplement debts will continue to be collected through the Australian Taxation system.
If you took out a Student Financial Supplement Loan between 1993 and 2003, you must repay some of your debt if your Repayment Income (RI) is greater than the thresholds in the table below.
The Repayment Income (RI) is your taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.
Hopefully, you have notified your pay office that you have an SFSS debt so that they can take extra PAYG Withholding on your behalf to cover your obligations. For the 2023 – 24 year, your employer will start withholding SFSS if your wages exceed $991 per week.
When you have lodged your 2024 tax return, based on your Repayment Income (RI) the ATO will calculate how much SFSS will need to be paid
Unfortunately, the SFSS has no provision to make any voluntary payments.
The SFSS is calculated by your pay office and the extra tax is withheld from your wages, in most cases enough that will be enough to cover your SFFS obligation when your tax return is completed.
Reportable Fringe Benefits
In some cases, if you are receiving reportable fringe benefits it may be wise to ask your pay office to withhold extra PAYG Withholding to cover a possible shortfall in SFSS at the end of the year.
I have been asked by clients, if is it worth salary sacrificing and receiving a reportable fringe benefit with the possibility of paying extra off the SFSS loan. Yes is my answer, the amount of tax saved by salary sacrificing will far outweigh any extra payments off your SFSS loan, keeping in mind that any extra payments will mean that your loan will be paid off earlier.
New SFSS Rates
From 1 July 2022, all study and training loans are covered by one set of thresholds and rates.
The hierarchy in which compulsory repayments are applied to study and training loans is:
- HELP
- VSL
- SFSS
- SSL
- ABSTUDY SSL
- TSL
If you have a HELP debt and an SFSS debt, once the HELP debt is paid off, the ATO will start applying the payment to the SFSS Debt.
| Repayment income (RI) | Repayment rate |
|---|---|
| Below $51,550 | Nil |
| $51,550-$59,518 | 1.0% |
| $59,519-$63,089 | 2.0% |
| $63,090-$66,875 | 2.5% |
| $66,876-$70,888 | 3.0% |
| $70,889-$75,140 | 3.5% |
| $75,141-$79,649 | 4.0% |
| $79,650-$84,429 | 4.5% |
| $84,430-$89,494 | 5.0% |
| $89,495-$94,865 | 5.5% |
| $94,866-$100,557 | 6.0% |
| $100,558-$106,590 | 6.5% |
| $106,591-$112,985 | 7.0% |
| $112,986-$119,764 | 7.5% |
| $119,765-$126,950 | 8.0% |
| $126,951-$134,568 | 8.5% |
| $134,569-$142,642 | 9.0% |
| $142,643-$151,200 | 9.5% |
| $151,201 and above | 10% |
Example of how the payment works
For example, if your income is $60,000, you will be required to repay 2% as your income is between $59,519-$63,089 per annum, 2% of $60,000 is $1200. It is important to note that the repayment rate is subject to change each financial year, so it is best to check with the relevant government website for the most up-to-date information.
