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Australia HELP/HECS Education Tax Guide

Australian Higher Education Loan Program (HELP) and the HECS-HELP. The guide covers: the HELP loan types — the 'HECS-HELP' (the 'Commonwealth supported student' loan — the 'CSP' loan for the 'domestic students' at the 'university'), the 'FEE-HELP' (the 'loan for the fee-paying students' — the 'full-fee paying students' at the 'university' or the 'private education provider'), the 'OS-HELP' (the 'loan for the overseas study' — the 'student exchange' and the 'overseas study'), and the 'SA-HELP' (the 'loan for the student services and amenities fee'); the compulsory repayment of the HELP loan — the 'compulsory repayment' (the 'HELP repayment') is required when the 'taxable income' of the 'individual' exceeds the 'minimum repayment threshold' (the 'income threshold for the 2025-26 year' — approximately $55,000 — the 'indexed threshold'); the 'repayment rate' is the 'progressive rate' based on the 'income bands' (the 'percentage of the taxable income' above the 'threshold'): (i) the 'income above $55,000' — the '1% repayment rate', (ii) the 'income above $59,500' — the '2% repayment rate', (iii) the 'income above $64,000' — the '2.5% repayment rate', (iv) the 'income above $68,500' — the '3% repayment rate', (v) the 'income above $73,000' — the '3.5% repayment rate', (vi) the 'income above $77,500' — the '4% repayment rate', (vii) the 'income above $82,000' — the '4.5% repayment rate', (viii) the 'income above $86,500' — the '5% repayment rate', (ix) the 'income above $91,000' — the '5.5% repayment rate', (x) the 'income above $95,500' — the '6% repayment rate', (xi) the 'income above $100,000' — the '7% repayment rate', (xii) the 'income above $114,000' — the '7.5% repayment rate', (xiii) the 'income above $128,000' — the '8% repayment rate', (xiv) the 'income above $143,000' — the '8.5% repayment rate', (xv) the 'income above $157,000' — the '9% repayment rate', (xvi) the 'income above $172,000' — the '9.5% repayment rate', (xvii) the 'income above $186,000' — the '10% repayment rate' (the 'maximum repayment rate'); the 'compulsory repayment' is 'withheld' by the 'employer' through the 'PAYG withholding' (the 'HELP withholding' on the 'tax file number declaration') or the 'individual makes the repayment' through the 'tax return'; the HELP indexation — the 'HELP loan balance' is 'indexed' annually (the '1 June each year') using the 'Consumer Price Index (the 'CPI')'; the 'indexation rate' for the '2023-24 year' was 7.1% (the 'high indexation rate' due to the 'high inflation'); the 'indexation rate' for the '2024-25 year' was 4.7%; the 'indexation' is applied to the 'outstanding HELP balance' to maintain the 'real value' of the 'loan'; the 'indexation' can be 'reduced' by the 'voluntary repayment' before the 'indexation date (the '1 June')'; the voluntary repayment — the 'voluntary repayment' of the 'HELP loan' can be made at any time through the 'ATO' (the 'voluntary repayment through the myGov' or the 'direct payment to the ATO'); the 'voluntary repayment' of $500 or more may qualify for the 'voluntary repayment bonus' (the '2% bonus' for the 'voluntary repayments' — the 'bonus was abolished from the 1 January 2023'; the 'bonus' is NOT available for the 'repayments made after the 1 January 2023').

HELP Repayment Rates (2025-26)

  • Minimum threshold ~$55,000: The 'compulsory HELP repayment' starts when the 'taxable income' exceeds the 'minimum repayment threshold' (approximately $55,000 for the 2025-26 year — the 'indexed threshold').
  • Repayment rate 1% to 10%: The 'repayment rate' is 1% for the 'income just above the threshold' and goes up to 10% for the 'income above $186,000'.
  • PAYG withholding: The 'employer withholds the HELP repayment' through the 'PAYG system'. The 'individual' must ensure the 'HELP withholding' is reflected in the 'tax file number declaration'.

For the PAYG withholding and the tax file number, see our Tax Filing Procedures Guide →.

HELP Indexation

  • Annual indexation (1 June): The 'HELP loan balance' is indexed on the '1 June each year' using the 'CPI'. The 'indexation rate' was 7.1% for the '2023-24 year' and 4.7% for the '2024-25 year'.
  • Voluntary repayment before 1 June: The 'voluntary repayment' made before the '1 June' can 'reduce the indexation impact' — the 'repayment' reduces the 'balance that is subject to the indexation'.
  • Indexation review: The 'government' may 'change the indexation method' for the 'HELP loans' — the '2024-25 Budget' proposed the 'credit for the high indexation' (the 'HELP indexation credit').

For the student loan rules and the education expenses, see the Australian Government's 'Study Assist' website (www.studyassist.gov.au).