From the 2006/2007 income year the basis for calculating a compulsory Financial Supplement Repayment changed from ‘Taxable Income’ to ‘Repayment Income’.
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SFSS Repayment Income (RI*)
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Repayment rate
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Below $51,957
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Nil
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$51,957–$64,306
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2% of RI
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$64,307–$91,425
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3% of RI
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$91,426 and above
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4% of RI
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From 1 July 2009 RI* became the sum of taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.
An exemption applies for taxpayers whose family income is below the Medicare Levy upper threshold.
The Student Financial Supplement Scheme (SFSS) closed on 31 December 2003 but students are required to repay their loans through the tax system. It was a voluntary loan scheme to help tertiary students cover their expenses while studying. Five years after the loan was taken out, the Tax Office takes responsibility for collecting the balance of the outstanding loan, which becomes an accumulated Financial Supplement debt.