SFSS – Student Financial Supplement Loan Repayment Thresholds and Rates

TL;DR

The Student Financial Supplement Scheme, commonly called SFSS, was an older student loan scheme that helped some tertiary students with living costs while they studied.

No new SFSS loans have been available since 1 January 2004, but some people may still have an outstanding SFSS debt. Existing SFSS debts can still be repaid through the tax system if your income is above the relevant repayment threshold.

SFSS is now included in the broader study and training support loan repayment system. The repayment thresholds and rates are generally the same as those used for HELP, VSL, SSL, ABSTUDY SSL and other study and training loans.

For the current repayment thresholds and examples, see our latest guide:

ATO HELP/HECS and Study Loan Repayment Thresholds and Rates for 2026

What Was the Student Financial Supplement Scheme?

The Student Financial Supplement Scheme, or SFSS, was a voluntary loan scheme that helped eligible tertiary students cover study and living costs.

The scheme is now closed, so students can no longer take out a new SFSS loan. However, older loans may still exist. If you borrowed under the scheme and still have an outstanding balance, that debt may still be included in your study and training loan account.

This means you may still need to make compulsory repayments if your repayment income is above the relevant ATO threshold.

Are SFSS Repayment Rates Different From HELP/HECS?

For current repayment purposes, SFSS is included in the broader study and training support loan system.

This means SFSS generally uses the same repayment thresholds and rates as other study and training support loans, including:

HELP
VSL
SFSS
SSL
ABSTUDY SSL
AASL

The ATO publishes the study and training loan repayment thresholds and rates each year, and SFSS is included in that system.

How SFSS Repayments Are Calculated

If you have an SFSS debt, the ATO calculates any compulsory repayment when your tax return is lodged.

The repayment is based on your repayment income, not simply your taxable income.

Repayment income can include your taxable income, plus other amounts such as reportable fringe benefits, reportable superannuation contributions and total net investment losses. This is why a person’s study loan repayment income can be higher than their taxable income.

If your repayment income is above the relevant threshold, the compulsory repayment is included on your notice of assessment.

Current Repayment Thresholds

SFSS repayment thresholds and rates can change each financial year.

Rather than listing the rates here, we recommend checking our latest HELP/HECS and study loan repayment guide for the current table, rates and examples.

See the current repayment rates here:
ATO HELP/HECS and Study Loan Repayment Thresholds and Rates for 2026

What If You Have More Than One Study Loan?

If you have more than one study or training loan, your compulsory repayment is applied against your loans in a set order.

The ATO states that compulsory repayments are applied in this order:

HELP
VSL
SFSS
SSL
ABSTUDY SSL
AASL

This means that if you have both a HELP debt and an SFSS debt, your compulsory repayment will generally be applied to your HELP debt before it is applied to your SFSS debt.

Do You Need to Tell Your Employer?

If you have an SFSS debt, you should make sure your employer knows you have a study and training support loan.

This is usually done through your Tax File Number declaration or by completing a withholding declaration if your circumstances change later.

Your employer can then withhold extra tax during the year to help cover the compulsory repayment that may be calculated when your tax return is lodged.

However, employer withholding may not always perfectly match the final repayment. This can happen if your repayment income is affected by reportable fringe benefits, salary sacrifice arrangements, investment losses or other adjustments.

Reportable Fringe Benefits and Salary Packaging

Reportable fringe benefits can affect your SFSS repayment because they may be included in your repayment income.

This is common where an employee has salary packaging, a novated lease, or other reportable benefits.

Even though reportable fringe benefits are not taxed in the same way as ordinary salary and wages, they can still increase your repayment income for study loan purposes. This may increase the compulsory repayment calculated when your tax return is lodged.

If you receive reportable fringe benefits and have an SFSS or other study loan debt, it may be worth checking whether extra PAYG withholding is needed during the year.

Voluntary Repayments

You can make voluntary repayments toward your SFSS debt at any time.

However, voluntary repayments are separate from compulsory repayments. Making a voluntary repayment during the year does not automatically remove the need for a compulsory repayment if your repayment income is above the relevant threshold when your tax return is lodged.

The main benefit of voluntary repayments is that they reduce the outstanding loan balance. This may also reduce future indexation because indexation is applied to the remaining debt balance.

Indexation of SFSS Debts

Outstanding SFSS loans are indexed each year, which means the debt can increase over time if it is not repaid. The Social Security Guide notes that existing SFSS loans continue under their repayment arrangements and that outstanding loans are indexed annually.

This is not interest in the same way as a bank loan. Instead, indexation adjusts the balance of the debt.

Living Overseas With an SFSS Debt

If you live overseas and have an SFSS or other study and training support loan debt, you may still have Australian repayment obligations.

In general, Australian residents living overseas with a study or training loan may need to report their worldwide income to the ATO. If their repayment income is above the relevant threshold, a compulsory overseas repayment may apply.

Deceased Estates and SFSS Debts

If a person dies with an SFSS or other study loan debt, the executor may need to lodge any outstanding tax returns up to the date of death.

Any compulsory repayment included on a notice of assessment before death must be paid by the estate. However, the remaining loan balance is generally not passed on to the family personally.

Final Thoughts

Although the Student Financial Supplement Scheme is now closed, some taxpayers may still have an outstanding SFSS debt.

The important point is that SFSS is now dealt with under the broader study and training support loan repayment system. The repayment thresholds and rates are set by the ATO each financial year and are generally the same as those used for HELP/HECS and other study loans.

If you still have an SFSS debt, you should check your repayment income each year and make sure your employer is withholding correctly.

For the current year’s repayment thresholds, rates and examples, see our latest guide:

ATO HELP/HECS and Study Loan Repayment Thresholds and Rates for 2026