SFSS Repayment Calculator Australia 2025: What You Need to Know

If you still have an outstanding Student Financial Supplement Scheme (SFSS) debt, you might be wondering how much you're repaying each year — and when it will finally be paid off. Although the SFSS closed to new applicants back in 2004, many Australians still carry a balance that's quietly being repaid through the tax system. This guide explains how SFSS repayments work in FY 2025-26, how to estimate your repayment, and what you can do to speed things up.

What Is the Student Financial Supplement Scheme (SFSS)?

The Student Financial Supplement Scheme was a voluntary loan program offered by the Australian Government through the Commonwealth Bank of Australia. It was available to eligible full-time students receiving certain Centrelink payments, allowing them to borrow up to $2,000 per year (in exchange for forfeiting $1 of Centrelink payments for every $2 borrowed). The scheme was designed to help students cover everyday living expenses while studying.

The SFSS was closed to new applicants in 2004. Any remaining balances were transferred to the ATO, which now manages repayment through the tax system — much like HECS-HELP debt. If you still have an SFSS balance, it will appear on your MyGov tax record and is automatically repaid when your income exceeds the repayment threshold.

Like other study and training loans managed by the ATO, SFSS debts are indexed annually to reflect changes in the Consumer Price Index (CPI), which means your balance can grow over time if your repayments don't keep pace with indexation.

How SFSS Repayments Work in FY 2025-26

SFSS is grouped with other study and training support loans (including HECS-HELP, FEE-HELP, VET Student Loans, and Trade Support Loans). All of these use the same repayment mechanism: when your income reaches a certain threshold, the ATO requires a compulsory repayment, calculated as a percentage of your repayment income.

Your repayment income is your taxable income plus any reportable fringe benefits, reportable employer super contributions, and total net investment losses. For most employees it's simply your taxable income.

Source: ATO study and training loan repayment rates, FY 2025-26. Repayment threshold increased from $54,435 to $67,000 under the new marginal repayment system.

Note that your compulsory SFSS repayment cannot exceed your actual outstanding SFSS balance — you won't overpay. Any excess withholding will be refunded when you lodge your tax return.

Use our HECS-HELP Calculator to estimate study loan repayments using the same FY 2025-26 thresholds that apply to SFSS.

SFSS vs HECS-HELP: Key Differences

While SFSS and HECS-HELP use the same repayment thresholds and rates in FY 2025-26, there are some important differences you should be aware of:

• Purpose: SFSS was a living-expenses loan; HECS-HELP is a tuition-fee loan. Your SFSS debt covered day-to-day costs, not university fees.
• Closed scheme: No new SFSS loans have been issued since 2004. If you have SFSS debt, it's a legacy balance from your study years.
• ATO management: Both are now managed entirely by the ATO and repaid through your annual tax assessment — you don't need to make manual repayments.
• Indexation: Both debts are indexed to CPI each year on 1 June. In 2025, indexation was 3.2%. The Government also applied a 20% reduction to eligible historical HECS-HELP debt balances as of 1 June 2025 — but this reduction did not apply to SFSS debts.
• Voluntary repayments: You can make additional voluntary repayments on your SFSS debt at any time through MyGov or by contacting the ATO. Unlike in prior years, there is no longer a bonus discount for making voluntary repayments.

Check your current SFSS balance by logging into MyGov and navigating to ATO Online Services → Tax → Accounts → Loan accounts.

How Salary Sacrifice Affects Your SFSS Repayment

Many employees use salary sacrifice arrangements — for example, making extra super contributions from pre-tax income — to reduce their taxable income and save on tax. However, when it comes to SFSS (and all other study and training loans), salary sacrifice does not reduce your repayment income.

The ATO adds back reportable employer super contributions and reportable fringe benefits to your taxable income when calculating your study loan repayment income. So if you sacrifice $10,000 into super and your taxable income drops from $90,000 to $80,000, your SFSS repayment income will still be assessed at $90,000.

This is worth knowing before you implement a salary sacrifice strategy. You'll still save on income tax — but your SFSS repayment won't decrease. Learn more about the tax implications of salary sacrifice with our Salary Sacrifice Calculator.

How to Pay Off Your SFSS Debt Faster

Because SFSS debt is indexed to CPI each year, it's worth understanding how to manage it strategically:

• Make voluntary repayments: You can pay extra towards your SFSS balance at any time. Visit ATO Online Services via MyGov to make a payment. This reduces the balance that indexation is applied to each June.
• Make repayments before 1 June: Indexation is applied to your balance as at 1 June each year. Paying down a chunk of your balance before this date reduces the amount that gets indexed.
• Check if your balance is nearly paid off: As your income rises, your compulsory annual repayment can be substantial. It's worth checking your current balance to see if you're close to paying it off in full.
• Don't over-withhold unnecessarily: Your employer will withhold an additional amount from your pay if you advise them of a study loan. Make sure the withholding amount roughly matches your expected compulsory repayment — otherwise you're effectively giving the ATO an interest-free loan until refund time.

Want to see how your overall tax position looks after study loan repayments? Use our Take-Home Pay Calculator to see your net income after income tax, Medicare Levy, super, and study loan repayments.

SFSS and Your Tax Return

At tax time, the ATO automatically calculates your compulsory SFSS repayment based on your income for the year. This appears as a separate line item on your Notice of Assessment — distinct from your income tax liability.

If your employer has been withholding an additional amount for your study loan throughout the year (which they should be, if you've indicated you have a debt), this withholding is offset against your compulsory repayment. If too much was withheld, you'll receive a refund of the excess. If too little was withheld, you'll have a debt to pay.

To make sure the right amount is being withheld, let your employer know you have an SFSS debt by completing a Withholding declaration (NAT 3093) or advising your payroll department. Your employer will then use the ATO's withholding tables to calculate the appropriate additional withholding each pay period.

For a broader look at your tax obligations — including income tax, Medicare Levy, and super — use our Income Tax Calculator.

Summary: SFSS Repayment in FY 2025-26

• The SFSS was a living-expenses loan scheme that closed in 2004 — but outstanding balances are still repaid through the ATO
• Repayment kicks in when your income exceeds $67,000 in FY 2025-26
• Rates range from 15c per dollar (over $67,000) up to 10% of total income for high earners
• Your SFSS balance is indexed to CPI each 1 June — making early voluntary repayments worthwhile
• Salary sacrifice does not reduce your SFSS repayment income
• The 20% debt reduction for HECS-HELP (from June 2025) did not apply to SFSS balances
• Check your balance and make voluntary repayments via MyGov → ATO Online Services

Use our free calculators to build a complete picture of your tax and repayment obligations:

• HECS-HELP Calculator — estimate study loan repayments (same rates as SFSS)
• Take-Home Pay Calculator — see your net pay after all deductions
• Income Tax Calculator — calculate your exact income tax bill
• Salary Sacrifice Calculator — understand how salary sacrifice affects your tax (but not your study loan)
• Superannuation Calculator — project your super balance over time
• Medicare Levy Calculator — check if you owe Medicare Levy Surcharge