HECS-HELP is the Australian Government loan scheme that lets eligible students defer their university tuition fees. You don't pay upfront; instead the cost becomes a debt you repay later through the tax system once you earn enough. HECS and HELP are often used interchangeably — HELP is the broader program, HECS-HELP is the part covering Commonwealth-supported course fees.
It charges no interest — but it's indexed
A HECS-HELP debt doesn't accrue interest. Instead it's indexed once a year (on 1 June) so its real value keeps pace with prices. Recent law changed indexation to be based on the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), so the balance can't outpace wage growth as sharply as it did in earlier high-inflation years.
Repayments are income-based
You only make compulsory repayments once your repayment income rises above the annual threshold. From 2025-26 the system is marginal: you repay a percentage of the income above the threshold, rather than a percentage of your whole income (the old method). For most wage earners, repayment income is close to their salary.
How the money is collected
Tell your employer you have a study loan and they withhold extra tax from each pay. That withholding is an estimate — your real compulsory repayment is calculated when you lodge your tax return, based on your repayment income for the year.
See the current thresholds and your repayment
The exact thresholds and rates change each year. See the 2025-26 repayment thresholds and rates, or work out your own figure with the HECS/HELP repayment calculator. If you're buying a home, note it also affects how much you can borrow.
Source: ATO study and training support loans. General information only; indexation and thresholds are set by the ATO and can change.