Understanding Your HECS-HELP Debt

What is HECS-HELP?

HECS-HELP is a financial assistance program provided by the Australian Government. It offers eligible students a combination of a loan and a discount on their student contribution amounts. 

If you're eligible, the government will pay your course fees directly to your educational institution under the HECS-HELP scheme.

Repayments are made through the Australian taxation system once your income exceeds a certain threshold. For the 2023 – 24 financial year, this threshold is $51,550, and for 2024 – 25, it's $54,435. 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.

Am I Eligible for HECS-HELP?

To qualify for HECS-HELP, you must:

• Be enrolled in a Commonwealth Supported Place (CSP);
• Be an Australian citizen; or
• Be a New Zealand Special Category Visa holder who meets the long-term residency requirements; or
• Be a permanent humanitarian visa holder;
• Be enrolled in each unit at your university by the census date;
• Meet the relevant HECS-HELP residency requirements; and
• Submit a valid Request for Commonwealth Support and HECS-HELP form by the census date (or earlier administrative date) to your university. 

 

When Do I Need to Start Repaying My HECS-HELP Loan?

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 2023 – 24 financial year, the minimum RI threshold is $51,550. For 2024 – 25, it's $54,435. If your income exceeds this threshold, a compulsory repayment of at least 1% of your income 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%

2023 – 24 Repayment Thresholds and Rates:

Repayment Income (RI)	Repayment Rate
Below $51,550	Nil
$51,550 – $59,518	1.0%
$59,519 – $63,089	2.0%
$63,090 – $66,875	2.5%
$66,876 – $70,888	3.0%
$70,889 – $75,140	3.5%
$75,141 – $79,649	4.0%
$79,650 – $84,429	4.5%
$84,430 – $89,494	5.0%
$89,945 – $94,865	5.5%
$94,866 – $100,557	6.0%
$100,558 – $106,590	6.5%
$106,591 – $112,985	7.0%
$112,986 – $119,764	7.5%
$119,765 – $126,950	8.0%
$126,951 – $134,568	8.5%
$134,569 – $142,642	9.0%
$142,643 – $151,200	9.5%
$151,201 and above	10.0%

What is Repayment Income (RI)?

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

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 to Repay Your HECS-HELP Debt Through the Taxation 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 tax should 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

Keeping receipts and claiming all eligible deductions can reduce your RI, thereby minimising your compulsory annual 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.