this post was submitted on 21 Jul 2023
18 points (95.0% liked)
Australia
3586 readers
125 users here now
A place to discuss Australia and important Australian issues.
Before you post:
If you're posting anything related to:
- The Environment, post it to Aussie Environment
- Politics, post it to Australian Politics
- World News/Events, post it to World News
- A question to Australians (from outside) post it to Ask an Australian
If you're posting Australian News (not opinion or discussion pieces) post it to Australian News
Rules
This community is run under the rules of aussie.zone. In addition to those rules:
- When posting news articles use the source headline and place your commentary in a separate comment
Banner Photo
Congratulations to @[email protected] who had the most upvoted submission to our banner photo competition
Recommended and Related Communities
Be sure to check out and subscribe to our related communities on aussie.zone:
- Australian News
- World News (from an Australian Perspective)
- Australian Politics
- Aussie Environment
- Ask an Australian
- AusFinance
- Pictures
- AusLegal
- Aussie Frugal Living
- Cars (Australia)
- Coffee
- Chat
- Aussie Zone Meta
- bapcsalesaustralia
- Food Australia
- Aussie Memes
Plus other communities for sport and major cities.
https://aussie.zone/communities
Moderation
Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.
Additionally, we have our instance admins: @[email protected] and @[email protected]
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
It’s not interest it’s indexation. It’s tied to inflation. If you knew about it then it was easy to see coming, but obviously if you didn’t then you didn’t.
It is possible to index negatively and reduce the balance but pretty unlikely with todays economy.
It’s applied once per year at the start of June so any voluntary repayments are best made before the last week of May. The repayments you make through the year as wage deductions aren’t put against your balance until after you do your tax return.
Thanks yeah, I haven't been in Aus in many many years, so haven't been following it. Do they release next years rate before it goes into effect? Like, would it be best to wait to see if the ~7% goes down and therefore it is better to pay back if it's predicted to go down the following year? Or does each year compound and can only go up in what I'll owe? And yes, I really don't understand how these things work very well.
Each year it compounds. They announce it in March and apply it in June.
So you have balance +7% now Next year you will have balance +7% - any payments taken from your tax return this year + new rate
Hope that makes sense.
I had a debt for over ten years and do remember seeing it index down near the start of it so it is possible, but very improbable.
Thank you!