If you took out a Student Financial Supplement Loan between 1993 and 2003, you will have an amount to repay if your repayment income is greater than the thresholds in the table below.

The repayment income is your taxable income plus any net rental losses, total reportable fringe benefits amounts, reportable superannuation contributions and exempt foreign employment income.

Hopefully you have told your pay office that you have the debt so that they can take extra tax out on your behalf to cover your obligations. For the 2008 – 09 year your employer will start withholding SFSS if your wages exceed $863 per week.

Unfortunately with the SFSS there is no provision to make any voluntary payments.

At the end of the year when you do your tax return, based on your repayment income the ATO will calculate how much SFSS will need to be paid

The SFSS that is calculated and the extra tax that has been taken out of your wages by your pay office is in most cases enough to offset each other.

2010 – 11

Repayment incomeRepayment rate
Below $44,912Nil
$78,274 and above4%


  1. I believe this scheme was a way to rip off the poor and they are still ripping me off every year and it never gets paid – how can they be allowed to do this to people?

  2. I forfeited $60 per fortnight government assistance so I could be paid $120 per fortnight to help with cost of living expenses which I desperately needed at the time. 16 years later I am still trying to repay this loan through the tax office & I now owe double what I originally borrowed due to CPI increases. Not bad when it was promoted to me as an interest free loan. What happens to the debt if you never reach repayment thresholds? Lets face it if you live another 60 years the debt would be astranomical & then who pays it on your passing?

    1. If by chance you still have the debt at your passing, and if your final return is less than then the threshold then the debt doesn’t get paid.

  3. I am the same, i was just out of school and they let me get out a loan, the government, the money got taxed then so i didn’t really even notice it. Now it’s something i stress about every year, every new job. The amount it has gone up with interest is out of this world.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.