The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;
11. Students get less HELP
The Higher Education Loan Program (HELP) has changed significantly in 2019/20. Previously, there was no cap on the amount of HELP debt an individual could accrue. A cap of $104,440 now applies, with a higher cap of $150,000 for those currently studying medicine, dentistry or veterinary science.
The rates at which HELP loans must be repaid also ramp up in 2019/20, kicking in at an income of $45,880 and stepping up to 10 per cent for those earning over $134,572. Finally, HELP repayments will be aligned with the Student Financial Assistance Scheme to give clients one rate of repayment.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.