Repayment Income
The income measure used to calculate compulsory HELP/HECS repayments — taxable income plus other adjustments.
Repayment income (RI) is the income measure used by the ATO to determine your compulsory HELP/HECS, VSL, SSL, ABSTUDY SSL, and TSL repayments. It is broader than taxable income and includes: taxable income, any net investment losses added back, reportable fringe benefits amounts, reportable super contributions, and any exempt foreign employment income.
The use of repayment income rather than taxable income means that certain tax-minimisation strategies (such as negative gearing or salary sacrifice) do not reduce your HELP repayment obligation. For example, if your taxable income is $50,000 but you have $10,000 in net rental losses and $5,000 in reportable super contributions, your repayment income is $65,000, and your HELP repayment rate is based on this higher figure.
Repayment income is also used to determine eligibility for the Medicare Levy Surcharge, spouse super contribution offset, and various government benefits. Understanding your repayment income helps you predict your actual take-home pay if you have a HELP debt, as the compulsory repayments are effectively additional tax withheld by your employer throughout the year.