HELP Indexation
Annual adjustment of HELP debt balances on 1 June, using the lower of CPI or Wage Price Index since 2023.
HELP indexation is the annual adjustment applied to outstanding HELP, VSL, and other student loan debts on 1 June each year. Since the legislative change effective from 1 June 2023, indexation is calculated using the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). Previously, only CPI was used, which caused controversy in 2023 when CPI spiked to 7.1%, increasing some debts by thousands of dollars.
The change to the lower of CPI or WPI was applied retrospectively to the 1 June 2023 indexation, resulting in refunds or reductions for many borrowers. Going forward, this mechanism ensures that HELP debts cannot grow faster than wages, providing better protection against inflation shocks. For 2025, the indexation rate applied was approximately 3.2% (the lower of CPI and WPI at the time).
Importantly, voluntary repayments made before 1 June reduce the balance before indexation is applied, effectively saving you money. If you have a HELP debt and can afford to make a voluntary payment before 1 June, the indexation saving can be a guaranteed return — equivalent to the indexation rate on the amount you pay. However, there is no longer a bonus for voluntary repayments beyond this indexation timing benefit.