HECS-HELP Information & Tax Tips

In Australia, the Higher Education Contribution Scheme (HECS) fees, known as Higher Education Loan Program (HELP) since 2005, function as a way for students to finance their tertiary education through the taxation system.

When do I need to start repaying my HECS-HELP loan?

Repaying your HECS-HELP debt commences once your Repayment Income (RI) is above the minimum repayment threshold for compulsory repayment. That is, once your taxable income reaches a certain level. The RI thresholds are adjusted each year. The minimum RI threshold to make a loan repayment for2022-23 is $48,361 and for 2023-24 year is $51,550. Where income exceeds this threshold, a compulsory repayment of at least 1% of your income is raised in your income tax assessment. The percentage increases as your income increases.

Rates for 2023-24 are as follows:

2023-2024 Repayment Threshold	Repayment % rate
Below $51,550	Nil
$51,550 to $59,518	1.0%
$59,519 – $63,089	2.0%
$63,090 – $66,875	2.5%
$66,876 – $70,888	3.0%
$70,889 to $75,140	3.5%
$75,141 to $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)?

Your repayment income is different to your taxable income. It is calculated as:

your taxable income for an 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 repay you HECS-HELP debt though the taxation system

Compulsory repayments

When commencing a new job make sure you indicate to your employer that you have a HELP debt. This is done by ticking a box on the TAX DECLARATION FORM you will 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. The additional tax withheld by your employer should cover this repayment.

Note: Your employer only withholds the additional tax based on the income THEY pay to you. They won't take into account other income - from second or previous jobs or investment for instance - so you may have to make a top-up payment once you lodge your tax return.

Voluntary repayments

You are able to make voluntary repayments to your debt at any time to the ATO by BPAY and credit card. Please contact ATO for payment methods and details.

How to check your HECS-HELP debt balance

There are two main ways to check your HECS-HELP balance.

Contact the ATO directly or view your HECS-HELP balance online via the myGov site.

Tax tips for repaying your HECS-HELP debt

It is important to keep all work-related receipts and maximise your tax deductions once you earn Repayment Income. Reducing your Repayment Income threshold could reduce your compulsory repayment amount.

If you are working more than one job, each employer will only withhold additional tax to cover your HECS-HELP debt based on the income they pay you. If your combined income from multiple employers is over the minimum repayment threshold, you will still be liable to make a repayment towards your HECS-HELP debt when you lodge your tax return. If you are working more than one job you should inform one of your employers to withhold additional tax to cover your HECS-HELP loan in order to minimise a potential tax payable position when you lodge your tax return.

Disclaimer: Readers should not act solely on the basis of the material contained in this article. The information provided herein is a helpful guide only and does not constitute or convey advice per se. Furthermore, changes in income tax legislation may occur quickly. It is always recommended that readers seek professional and formal taxation and financial advice before acting in any of the matters discussed in this information sheet.