HELP/HECS Debt
A government loan for tertiary education tuition fees, repaid through the tax system once your income exceeds the minimum threshold.
HELP (Higher Education Loan Program), commonly still referred to as HECS (its former name, Higher Education Contribution Scheme), is a government loan scheme that allows eligible students to defer the cost of their tertiary education fees. The debt is recorded with the ATO and repaid through the tax system via compulsory repayments once your repayment income exceeds the minimum threshold — $54,435 for 2025–26.
Repayment rates are progressive, ranging from 1% to 10% of your total repayment income (not just the amount above the threshold). For 2025–26, the rates increase in steps: 1% at $54,435–$62,850, 2% at $62,851–$66,620, and so on up to 10% at incomes above $151,201. Your employer is notified of your HELP debt through your TFN declaration and withholds additional tax to cover the compulsory repayments.
From 1 June 2023, HELP debts are indexed annually on 1 June using whichever is lower: the Consumer Price Index (CPI) or the Wage Price Index (WPI). This change was introduced to prevent the situation that occurred in 2023 when high CPI (7.1%) caused large debt increases. Voluntary repayments can be made at any time to reduce the debt faster, though the government removed the voluntary repayment bonus (which used to provide a 5% discount on voluntary payments of $500+).