The ATO has confirmed that the 2026 indexation rate for study and training loans is 2.8%. This will be applied on 1 June 2026 to eligible outstanding loan balances.
Indexation may apply to a range of study and training loans, including:
Indexation is not the same as interest, but it does increase the balance of a student loan.
Each year, indexation is applied to the part of a study or training loan that has remained unpaid for more than 11 months. The purpose of indexation is to maintain the real value of the loan by adjusting it in line with inflation and wage movements.
The way student loan indexation is calculated has changed.
From 2025, the indexation rate is based on the lower of:
For the 2026 financial year, the CPI indexation factor is 1.028, while the WPI indexation factor is 1.034. As CPI is lower, the 2.8% indexation rate will apply.
The information contained on this website and in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website and in this article are of a general nature only and are based on our interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
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