Student Loan Repayment Hacks (Australia Edition)

If you studied in Australia, chances are you’ve got a HECS-HELP or TAFE loan. While student loans here are income-based and interest-free in theory, they’re subject to indexation — which can catch you off guard. Here are some smart hacks to pay off your student loan faster in 2025.

1. Make Voluntary Contributions Before June 1

Indexation is applied on June 1 each year. If you can make even a small voluntary payment before this date, you’ll reduce the amount that gets indexed.

2. Use Tax Refunds Wisely

Instead of splurging, consider putting your tax refund directly towards your student loan. It’s a guilt-free way to knock down your balance.

3. Increase Your Repayment Rate (If You Can)

The compulsory repayment threshold in 2025 is expected to be around $51,000. If your income is higher, consider increasing your contributions — it’ll save you in the long run.

4. Treat Your Loan Like a Debt (Because It Is)

Many Australians forget their student loan exists because it comes out of their salary. But it’s still debt. Being proactive will help you achieve financial freedom sooner.

5. Budget for Voluntary Repayments

Even $20/week adds up over time. Set up automatic transfers to the ATO via BPAY.

But Should You Even Repay Early?

It depends. If you have higher-interest debt (like credit cards), focus on those first. But if you’ve cleared other debts, repaying your HELP loan early can be a great move — especially before indexation.

Disclaimer: This is general advice only. Speak to a registered tax or financial adviser for personal guidance.