HECS (Higher Education Contribution Scheme)

This is a loan scheme whereby a university student pays back their university course fees. Repayments are based on a progressively scaled percentage of annual earnings once a minimum earnings threshold is met. Tertiary education fees in Australia are payable for courses at tertiary education institutions. The Commonwealth government provides loans and subsidies to relieve the cost of tertiary education for some students. 

Repaying you HECS-HELP debt commences once your Repayment Income (RI) is above the minimum repayment threshold for compulsory repayment. That is, once your taxable income reaches a certain level.

The RI thresholds are adjusted each year. The minimum RI threshold to make a loan repayment for 2023-24 is $51,550.

 

There are two main ways to check your HECS-HELP debt balance:

1. contact the ATO on 13 28 61, and provide them with your TFN. With this they are able to verify your personal details and tell you your HECS-HELP balance or
2. view your HECS-HELP balance online via the myGov site. You will need to link your account to the ATO so they have all the details. From here, you view your balance online.

Keeping receipts and claiming deductions for everything you're entitled to can reduce your RI and minimise your compulsory annual repayment amount. It is important to keep all work related receipts and to take advice on what you can claim in order to maximise your refund. If you are working more than one job, each employer will only withhold additional tax to cover your HECS-HELP debt based on the income that they pay you.