Frequently Asked Questions
When do I start repaying my HECS-HELP debt?
You start making compulsory repayments through the tax system once your repayment income exceeds the minimum threshold, which is $54,435 for the 2025-26 income year. Repayment income includes your taxable income, any net investment losses, reportable fringe benefits, and reportable super contributions.
How is my HECS repayment calculated?
Your compulsory repayment is a percentage of your total repayment income — not just the portion above the threshold. The rate increases as your income rises, from 1% up to 10%. For example, if you earn $65,000 and the rate is 2%, your repayment is 2% of $65,000 = $1,300 for the year.
Does HECS indexation still apply?
Yes. HELP debts are indexed annually on 1 June. From 1 June 2023 onwards, indexation is capped at the lower of CPI or the Wage Price Index (WPI), which limits the rate of increase. Previously, only CPI was used. This change was backdated to include the 2022-23 year.
Can I make voluntary repayments?
Yes. You can make voluntary repayments at any time through the ATO. However, since 1 January 2024, the bonus for voluntary repayments has been removed — previously you could get a 5-10% bonus. Voluntary repayments now reduce your debt dollar-for-dollar with no additional bonus.