HELP repayments now work differently | Client Alert | November 2026
HELP repayments now work differently
The way compulsory HELP and other study and training loan repayments are calculated has recently changed. If you have one of these loans, the new system may affect how much you repay.
Compulsory repayments moved to a marginal system from the 2025–2026 financial year. Instead of applying a repayment percentage to your entire repayment income, repayments are generally calculated only on the amount above the minimum threshold. For 2026–2027, that threshold is $69,528.
There’s another figure to keep in mind, too: your repayment income. This isn’t necessarily the same as your salary or taxable income.
Repayment income can include taxable income as well as amounts such as reportable fringe benefits, reportable super contributions, exempt foreign employment income and net investment losses, including net rental losses. This means a change in your circumstances could affect your compulsory repayment even if your salary hasn’t changed.
If you’re an employee and you’ve told your employer about your study or training loan, extra amounts may be withheld from your pay. What’s withheld during the year isn’t your final compulsory repayment, though. That amount is calculated through the tax system using your repayment income and you’ll see the compulsory amount for each financial year after you lodge your tax return.
Is your side hustle becoming a business?
Do you sell products online, do freelance work, tutor or earn money from content creation? What starts as a hobby or occasional source of extra income can change over time, and so can the tax consequences.
The ATO recently updated its guidance for people who create content or sell online, but the broader question applies to plenty of side hustles: are you carrying on a business, earning income outside a business, or simply pursuing a hobby?
There isn’t one test that gives you the answer. Instead, factors such as whether you’re trying to make a profit, how regularly you carry on the activity, its size and scale, and whether you operate in an organised, business-like way all help build the picture.
Importantly, not being in business doesn’t automatically mean the money you receive is tax-free. Income from a side hustle may still need to be declared even where the activity hasn’t become a business. Genuine hobbies are treated differently.
It’s also worth remembering that payment isn’t always cash. For example, content creators may receive products, services or other benefits in return for their work, and these can have tax implications too.
If your side hustle’s grown or changed, it may be a good time to take another look at it. Talk to us if you’re unsure how your activities should be treated or what you need to report.
Monthly PAYG instalments could become an option
Would paying your income tax instalments monthly rather than quarterly make cash flow easier to manage? A government proposal could give more businesses that choice from 1 July 2027.
Most businesses in the PAYG instalment system currently pay quarterly, although payment frequency depends on individual circumstances. Under the proposed changes, businesses that pay quarterly or annually would be able to opt in to monthly PAYG instalments.
The government has also proposed allowing the ATO to require monthly instalments where a taxpayer has a history of failing to comply with their tax obligations.
Importantly, these changes aren’t law yet. Draft legislation has been released for consultation, so the details may change before anything takes effect.
For businesses, monthly instalments could have both advantages and disadvantages. Smaller, more frequent tax payments may suit some cash-flow patterns, while other businesses may prefer their existing payment cycle and the administration that goes with it.
There’s nothing businesses need to change yet. If the proposals become law, we’ll be able to help you consider whether opting for monthly instalments makes sense for your business.
What could retirement look like for future generations?
Australians are expected to retire with much more super in the decades ahead, but Treasury’s latest long-term outlook suggests there’s another part of the retirement picture that remains particularly important: housing.
The 2026 Intergenerational Report looks at how Australia’s economy, population and government finances could change over the next 40 years. These are projections rather than predictions about any individual’s future, but they reveal some interesting trends.
One is the growing role of super. The median super balance of Australians aged 65 to 69 increased from $115,000 in 2014 to $204,000 in 2024. Treasury projects it will approach $450,000 by 2037, in nominal terms, as Australia’s compulsory super system continues to mature.
At the same time, fewer older Australians are expected to rely on government income support. The proportion of people aged 67 and over receiving an Age Pension or another pension or income-support payment is projected to fall from 66% in 2025–2026 to 52% by 2065–2066.
Having more super doesn’t tell the whole retirement story: the report also points to the very different financial circumstances of retirees who own their home
and those who rent privately. Research shows that 67% of retirees who rent privately live in poverty, compared with 11% of retired homeowners.
For people planning for retirement, the message isn’t that there’s one ideal combination of super and housing. It’s that retirement circumstances can look very different from one person to another.
If you’re thinking about your own retirement, talk to us about the tax and super considerations involved and, where appropriate, obtaining licensed financial advice.
SMSF record-keeping beyond the bank feed
Bank feeds and accounting software can make running an SMSF easier, but they don’t take care of all your fund’s record-keeping obligations.
The ATO recently updated its guidance to make one point particularly clear: even where an SMSF uses a data feed, the fund’s auditor still needs bank statements for the annual audit. The statements help confirm matters such as whether the account belongs to the SMSF, whether the year-end balance is correct and whether the data feed itself is complete and accurate.
And bank records are only part of the picture. SMSF trustees need to keep financial records that explain the fund’s transactions and financial position, along with documents supporting matters such as benefit payments, deductions, capital gains and losses and the fund’s tax calculations.
Some records must be kept for at least five years, while important trustee and governance records generally need to be kept for at least 10 years. These include records of trustee decisions, changes of trustees and relevant trustee declarations and consents.
Your fund’s annual asset values also need appropriate supporting evidence. This can be particularly important where an SMSF holds assets such as property or unlisted investments.
Digital tools can make SMSF administration more efficient, but the trustee remains responsible for keeping the records the fund needs.
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Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.