HELP Debt Repayment: Who Pays, When, How Much

HELP debt repayment starts only when your repayment income passes the minimum threshold, which is $69,528 for 2026-27. Below that you repay nothing. Above it, the Australian Taxation Office (ATO) collects 15c for each dollar over the threshold, with higher bands for higher earners, through your pay and your tax return.

That is the short answer, but "who pays, when and how much" plays out differently for a graduate on one salary, a nurse with two jobs, a contractor with an Australian Business Number, and someone who has moved to London. This guide covers each situation in plain English, with tables for the current bands, per-pay amounts and the special cases that other guides skip. Every figure is as of 2026, and thresholds are indexed each year, so check the ATO before relying on a number.

HELP debt repayment in one page

The Higher Education Loan Program (HELP) is the Commonwealth loan scheme that pays university and some vocational fees on your behalf. It grew out of the Higher Education Contribution Scheme (HECS) that the Hawke Labor government introduced in 1989, which is why most people still say "HECS debt". Today HELP includes HECS-HELP for Commonwealth supported places, FEE-HELP for full-fee places, SA-HELP for the student services fee and OS-HELP for overseas study. VET Student Loans and apprenticeship loans are repaid through the same system.

The full band tables, with a salary calculator, are on our HELP repayment rates page.

Who pays HELP debt, and who doesn't

Repayment depends on income, not on whether you finished your course, whether you are still studying, or how long ago you borrowed. The test each year is your repayment income: taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign employment income. That definition matters because salary sacrifice and negative gearing do not lower it.

• You pay if you have any HELP balance and your repayment income for the year is above the minimum threshold, even if you are still enrolled.
• You don't pay in any year your repayment income is at or below the threshold. There is no minimum payment and no penalty for a low-income year.
• Your partner doesn't pay. The debt belongs only to you. A partner's income does not change your repayment, and they cannot be pursued for it.

Enrolment details sit with the Department of Education, which runs the Study Assist information site, while the ATO handles balances and collection. You can view your balance in myGov by linking ATO online services.

When HELP repayments happen during the year

There are two moments when money moves, and knowing both explains most surprises.

1. Through your pay (withholding)

When you tick the study loan question on your tax file number declaration, your employer withholds extra tax from each pay under the ATO's study and training support loan tables. This is an estimate based only on the salary that employer pays you. It is held as a tax credit, not paid straight to your loan.

2. At tax time (the compulsory repayment)

After you lodge, the ATO calculates your actual repayment on your full repayment income for the year and adds it to your notice of assessment. All your withholding credits are set against your total tax plus HELP. If withholding was short, you get a smaller refund or a bill; if it was high, you get the excess back. Your loan balance falls by the compulsory amount when the assessment is issued.

For a detailed look at how the bands work at the edges, see our guide to the HECS repayment brackets for 2026-27.

How much HELP debt repayment you make

Since the 2025-26 income year, the repayment is marginal. Each rate applies only to the income inside its band, which removed the old "cliff" where earning one more dollar could add hundreds to your bill. The top band still charges 10% on total repayment income, but the thresholds are set so the switch is almost seamless.

Per-fortnight figures divide the annual amount by 26 and are only a guide; actual withholding follows the ATO tables and rounds differently. The repayment is capped at your remaining balance. Our explainer on how HECS repayment thresholds work covers how the dollar thresholds are indexed each year.

HELP repayment by life situation

This is where general guides stop. The rules are the same for everyone, but the way the money is collected changes a lot depending on how you earn.

HELP repayments for ABN earners

If you trade under an ABN, nobody withholds HELP from your invoices. Your first profitable year therefore lands in one go on your assessment. After that the ATO may include HELP in your PAYG instalment rate, spreading the next year's amount across quarterly activity statements. Our guide to HECS for sole traders walks through the numbers.

HELP repayments when you live overseas

Moving abroad does not pause the debt. Each year you either lodge an Australian return or give the ATO an overseas travel notification and worldwide income report. If your worldwide income, converted to Australian dollars, is above the threshold, you pay the same kind of amount, called the overseas levy if you are a non-resident. Ignoring it can lead to penalties and a bill later. The steps are in our article on HECS debt when moving overseas.

Indexation, the 20% cut and voluntary payments

HELP debts do not charge interest, but on 1 June each year the balance is indexed. Under the current rules the rate is the lower of the Consumer Price Index and the Wage Price Index, a change backdated to 2023 as part of the Universities Accord reforms. In 2025 the government also legislated a one-off 20% reduction to study loan balances, applied to debts as they stood on 1 June 2025, before that year's indexation.

Voluntary repayments go straight to the balance and reduce future indexation. You can pay through BPAY, card or ATO online services, using your payment reference number. There has been no bonus for voluntary repayments since 2017, so whether paying early is worth it depends on your other options, such as an offset account or high-interest debt.

Two quick HELP repayment examples

Priya, graduate engineer. Priya earns $85,000 in 2026-27 from one employer, has no fringe benefits and no investments. Her repayment income is $85,000, so her compulsory repayment is 15% of the $15,472 above the threshold, about $2,321, or roughly $89 a fortnight withheld. With a balance near $28,000 and no voluntary payments, she would take many years to clear it, and indexation will add to the balance each June, so her real payoff date depends on her future pay rises.

Tom, contractor with an ABN. Tom works as a freelance designer. His net business profit for 2026-27 is $95,000 and nothing is withheld. When he lodges, the ATO assesses a compulsory repayment of 15% of $25,472, about $3,821, on top of his income tax. If he has not set that aside, it arrives as a single bill, and the ATO may then add HELP to his quarterly PAYG instalments for the following year. Putting away about $320 a month from his invoices would have covered it.

Both amounts are illustrative and ignore other income; your own repayment depends on your full repayment income for the year.

Common HELP repayment mistakes

• Not telling every employer. With two jobs, tell each employer about the loan if your combined income will go over the threshold, or put money aside.
• Using last year's threshold. Your return is assessed with the bands for the income year you are lodging, not the current one.
• Assuming salary sacrifice helps. It lowers income tax, not HELP repayments.
• Forgetting the overseas obligation. The ATO receives data from other tax agencies, and unreported years can come back with penalties.
• Paying off HELP before expensive debt. A credit card or car loan at a double-digit rate usually costs far more than indexation.

For current official figures and to manage your loan, use the myGov guide to managing your HELP loan. Figures here are as of 2026 and change each year.

This article is general information, not financial, tax or legal advice. Figures are approximate and change over time — always verify with a qualified professional or the official source before making a decision.

Written and reviewed by the HECS Debt Calculator editorial team. Facts checked against primary sources; see the reference above.

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