HECS-HELP loans cover university tuition, repaid through the tax system once your income exceeds a threshold.
From 1 July 2025, HELP repayments changed to a marginal calculation model — you're only charged the repayment rate on the portion of income above the minimum threshold, rather than a flat percentage of your total income. This removed the "cliff" effect where crossing a threshold could previously increase your total repayment disproportionately.
Your employer withholds an estimated repayment amount through PAYG, based on your declared HELP debt. At tax time, your actual repayment is calculated and reconciled against what was withheld.
Outstanding HELP debt is indexed annually — recent reforms changed the indexation method to use the lower of CPI or the Wage Price Index, reducing the impact of high inflation years on debt balances.
Estimate your compulsory repayment.
Use the HECS-HELP Repayment Calculator →Thresholds and rates are indexed annually and the calculation method changed in 2025. Verify current figures with the ATO or StudyAssist before making financial decisions.