How does HECS-HELP repayment work through the tax system?

Understand how compulsory HELP loan repayments are calculated and collected through your tax return.

Summary

Compulsory repayments of study and training support loans, including HELP debts such as HECS-HELP, are calculated through the income tax system when your repayment income is above the minimum threshold.

What this means

HELP and other study and training support loans are covered by one set of repayment thresholds and rates. From the 2025–26 income year, compulsory repayments use a marginal repayment system for most repayment income levels, so the repayment is generally calculated on income above the minimum threshold. The ATO works out any compulsory repayment when you lodge your tax return and includes it on your Notice of Assessment. Repayment thresholds are indexed each year.

You do not make your compulsory HELP repayment separately during the year. If you have a study or training support loan, you tell your employer through a TFN declaration or withholding declaration so additional amounts can be withheld from your pay. You can also make voluntary repayments at any time. Outstanding study and training support loan balances are indexed annually, with the indexation rate based on the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI). Eligible study and training loan balances that existed on 1 June 2025 also received a legislated 20% reduction.

Typical actions

  • Tell your employer if you have a study or training support loan.
  • Complete a TFN declaration or withholding declaration indicating your loan type.
  • Check your loan balance through ATO online services or the ATO app.
  • Consider whether voluntary repayments may help reduce the balance.
  • If you plan to live overseas long-term, understand your reporting obligations.

Official ATO sources

Last checked: 24 August 2026

Study and training support loans
Main ATO hub for HELP, VSL, SSL, SFSS and AASL loans.

How study and training support loans work
Explains how income-contingent loans work in general.

Compulsory repayments
Explains how and when compulsory repayments are calculated.

Related questions

Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.

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