HECS / HELP loans

If you study at an Australian university or some VET providers, you can take out a HECS-HELP loan to cover tuition. The loan is interest-free but indexed annually to inflation.

Who's eligible

• Australian citizens, permanent humanitarian visa holders, and (limited) New Zealand citizens.
• Most temporary residents (student visa, 482, 485, partner provisional) are NOT eligible for HECS-HELP and pay full international fees.

Repaying the loan

• Repayment kicks in once your income hits the minimum threshold.
• For 2025–26, the minimum repayment income is $67,000 (up from $54,435 in 2024–25).
• From 2025–26, repayments are calculated on a marginal-rate basis — you only repay on income above the threshold, not on your whole income.
• Repayments come out of your salary automatically when you tick the HECS box on your TFN declaration.

Indexation

• The outstanding balance is indexed each year on 1 June.
• From 2023, indexation is based on the lower of CPI or Wage Price Index (WPI), introduced as relief after high inflation pushed indexation to 7%+ in 2023.
• Recent legislation reduced existing HECS-HELP balances by 20% (verify if you have an outstanding balance — the ATO applied this in 2025).

If you go overseas

• HECS-HELP debt doesn't disappear when you leave Australia.
• You must report your worldwide income to the ATO if your overseas earnings exceed the threshold — and you may need to make repayments while overseas.
• See https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/overseas-repayments

Common gotchas

• Forgetting to declare a HELP debt to a new employer. Tick the HECS box on your TFN declaration form.
• Assuming the debt doesn't follow you home — it does.
• Paying off voluntarily is rarely worthwhile (low effective interest, opportunity cost).