Originally Posted by
MagnumPI
Or, does the $80,000 'reduce' over than 7 years - like an imaginary repayment/amortisation schedule?
Pretty much like this, interest accrues at the ATO benchmark interest rate for that year. At 7.77%, just as an assuming, cadet's pay
110k through the loan repayments over the 7 years. Wage is deducted to pay for your loan after tax.
Additionally, you have a 25k training bond that accrues at the ATO benchmark rate too, so for the first two years your loan actually goes UP. It's roughly 43k held as a bond by the end of the 7 years, which REx'll then make you stop being liable for after that 7 years.
Essentially, if you leave before ~4 years, you're paying about 91k back to REx on your last day of employment 