The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia. Repayment of the financial supplement - after the contract ends

Note: No new financial supplement loans are available from 1 January 2004.

For existing loans, a person's loan repayment arrangements will continue unchanged. Each year outstanding SFSS loans are indexed, which means any outstanding SFSS loan is likely to grow over time.

The following SFSS guideline referenced remain for historical purposes.

Debt to the Commonwealth

At the end of the financial supplement contract period, the Commonwealth pays the CBA the outstanding amount of the financial supplement that has not been repaid by the student. From that date, the student has a debt owed to the Commonwealth rather than the CBA. This debt is subject to indexation, meaning that it is adjusted to keep up with changes in the cost of living each year. The amount a person repays in total will be more than the original amount of the loan.

In some circumstances, the Commonwealth may have bought back a financial supplement before the end of the contract period.

Example: A student died, or false or misleading information had been provided about the student.

Notice to student

As soon as possible after the contract period the student must be informed:

  • of the amount of the financial supplement debt or debts
  • that the debt or debts are now owed to the Commonwealth and not the CBA
  • that repayments will no longer attract a bonus
  • that repayment of the debt or debts can be made at any time directly to the ATO, and
  • that amounts not voluntarily repaid will be recovered through the taxation system.

Repayment through the taxation system

The student begins repaying the financial supplement debt from the tax return for the financial year in which the contract period ends, PROVIDED their income is above the specified level.

If the student is required to make a repayment for a financial year, the amount is included in the ATO assessment notice provided to the student.

Level of taxable income

The amount of financial supplement debt a student is required to repay for a financial year depends on the level of their taxable income. These taxable income levels are adjusted each year and are published by the ATO (Study and Training loan repayment thresholds and rates).


If you are dissatisfied with the repayment arrangements for your SFSS, you may wish to phone freecall 1800 132 468. This number will put you in contact with a Services Australia officer, who will assist you with your concerns.

Act reference: SSAct Chapter 2B Student Financial Supplement Scheme

Policy reference: SS Guide Repayment of the financial supplement - before the contract ends

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