Understanding Your HECS-HELP Debt

What HECS-HELP Is and How It Works in Australia

HECS-HELP is a financial assistance program provided by the Australian Government. It allows eligible students to defer their student contribution amounts through a government loan. 

If you're eligible, the government will pay your student contribution amounts directly to your education provider under the HECS-HELP scheme.

Repayments are made through the Australian taxation system once your income exceeds a certain threshold. For the 2024–25 financial year, the minimum repayment income threshold is $54,435. For 2025–26, the minimum repayment income threshold is $67,000. From 2025–26 onwards, compulsory repayments are calculated only on the portion of your repayment income above the threshold. You can also make voluntary repayments at any time, regardless of your income.

A HECS-HELP debt is incurred immediately after the census date for any university course you've chosen to receive HELP assistance for.

HECS-HELP Eligibility Requirements in Australia

To qualify for HECS-HELP, you must:

• Be enrolled in a Commonwealth Supported Place (CSP);
• Meet the citizenship and residency requirements
  • Be an Australian citizen who will study at least some of the course while living in Australia; or
  • Be a New Zealand Special Category Visa holder who meets the long-term residency requirements and studies the entire course in Australia; or
  • Be a permanent humanitarian visa holder or eligible former permanent humanitarian visa holder, who will be resident in Australia for the duration of the units or
  • A Pacific engagement visa (PEV) holder who will be resident in Australia for the duration of the units.
• Be enrolled in each unit at your university by the census date;
• Be assessed as a genuine student and as academically suitable for the unit(s) of study
• Not undertake more than two years' worth of higher education study in 12 months unless your provider has approved you to take on more; 
• Submit a valid Request for Commonwealth Support and HECS-HELP form by the census date (or earlier administrative date) to your university

 

When HECS-HELP Repayments Start and Applicable Thresholds

You are required to start repaying your HECS-HELP debt once your Repayment Income (RI) exceeds the minimum threshold for compulsory repayment. This threshold is adjusted annually.

For the 2024-25 financial year, the minimum RI threshold is $54,435. If your income exceeds this threshold, a compulsory repayment calculated at the applicable rate is included in your income tax assessment. The repayment percentage increases as your income rises.

2024 – 25 Repayment Thresholds and Rates:

Repayment Income (RI)	Repayment Rate
Below $54,435	Nil
$54,435 – $62,850	1.0%
$62,851 – $66,620	2.0%
$66,621 – $70,618	2.5%
$70,619 – $74,855	3.0%
$74,856 – $79,346	3.5%
$79,347 – $84,107	4.0%
$84,108 – $89,154	4.5%
$89,155 – $94,503	5.0%
$94,504 – $100,174	5.5%
$100,175 – $106,185	6.0%
$106,186 – $112,556	6.5%
$112,557 – $119,309	7.0%
$119,310 – $126,467	7.5%
$126,468 – $134,056	8.0%
$134,057 – $142,100	8.5%
$142,101 – $150,626	9.0%
$150,627 – $159,663	9.5%
$159,664 and above	10.0%

2025 – 26 Repayment Thresholds and Rates:

Repayment Income (RI)	Repayment Rate
Below $67,000	Nil
$67,001 – $125,000	15c for each $1 over $67,000
$125,001 – $179,285	$8,700 plus 17c for each $1 over $125,000
$179,286 and over	10% of your total repayment income

 

How Repayment Income Is Calculated for HECS-HELP

Repayment Income (RI) is different from your taxable income. It's calculated as:

• Your taxable income for the income year, plus
• Your total net investment losses, plus
• Any total reportable fringe benefit amounts shown on your Income Statement, plus
• Reportable super contributions, and
• Any exempt foreign employment income from the current income year.

How to Check Your HECS-HELP Debt Balance in Australia

You can check your HECS-HELP debt balance in two main ways:

1. Contact the Australian Taxation Office (ATO) on 13 28 61. Provide your Tax File Number (TFN), and they will verify your personal details and inform you of your HECS-HELP balance. 
2. View your HECS-HELP balance online via the myGov website. You'll need to link your myGov account to the ATO to access your loan details. Once linked, you can view your balance online. 

How HECS-HELP Repayments Are Made Through the Australian Tax System

Compulsory Repayments

When you start a new job, inform your employer that you have a HELP debt. This is done by ticking the appropriate box on the Tax Declaration Form you complete before starting work.

Your employer will withhold additional tax from each pay to cover your estimated HECS-HELP debt liability based on your annual RI. This additional withholding is intended to help cover your compulsory repayment.

Note: Your employer only withholds additional tax based on the income they pay you. They won't consider other income sources, such as from second jobs or investments. Therefore, you may need to make a top-up payment when you lodge your tax return.

Voluntary Repayments

You can make voluntary repayments to your HECS-HELP debt at any time via BPAY or credit card. Visit the ATO website or your nearest H&R Block office for more information on making repayments and determining the best time to do so.

Tax Tips for Repaying Your HELP Debt

Claiming eligible deductions can reduce your taxable income, which may reduce your repayment income and your compulsory repayment amount. It's important to retain all work-related receipts and seek advice on what you can claim to maximise your tax refund. Refer to our ultimate guide to tax deductions for more information.

If you're working more than one job, each employer will only withhold additional tax based on the income they pay you. If your combined income from multiple employers exceeds the minimum repayment threshold, you'll still be required to make a repayment towards your HECS-HELP debt when you lodge your tax return.

For personalised assistance with your HECS-HELP repayments and tax obligations, visit your nearest H&R Block office.