Need help with HELP debts?
Here are some tips on repaying your HELP debt…
If you are one of many people who finished university with a HELP (Higher Education Loan Program) debt, you might not be sure exactly what the steps are to repay help debt.
It’s important that you know how to repay HELP debt, so you can pay it off and move on with your life!
HECs (Higher Education Contribution Scheme) debts are now also known as a HELP debt.
HELP Debt Payments: Some Details and Options
If you have a HELP debt, you must start repaying it when your income is above the minimum threshold set by the ATO. For the 2023-24 financial year the minimum threshold is $51,550.
Your HELP repayment income is the total of the following amounts from your income tax return:
- Taxable Income,
- Any amount your taxable income was reduced by a rental loss,
- Reportable fringe benefits,
- Any exempt foreign employment income amounts, and
- Reportable super contributions.
The 2023-24 HELP repayment thresholds and rates:
REPAYMENT INCOME | REPAYMENT RATE |
Up to $51,550 | No repayment |
$51,550 – $59,518 | 1.0% |
$59,519 – $63,089 | 2.0% |
$63,090 – $66,875 | 2.5% |
$66,876 – $70,888 | 3.0% |
$70,889 – $75,140 | 3.5% |
$75,141 – $79,649 | 4.0% |
$79,650 – $84,429 | 4.5% |
$84,430 – $89,494 | 5.0% |
$89,495 – $94,865 | 5.5% |
$94,866 – $100,557 | 6.0% |
$100,558 – $106,590 | 6.5% |
$106,591 – $112,985 | 7.0% |
$112,986 – $119,764 | 7.5% |
$119,765 – $126,950 | 8.0% |
$126,951 – $134,568 | 8.5% |
$134,569 – $142,642 | 9.0% |
$142,643 – $151,200 | 9.5% |
$151,201 and above | 10% |
The 2022-23 HELP repayment thresholds and rates:
INCOME | REPAYMENT RATE |
Up to $48,361 | No repayment |
$48,361 – $55,836 | 1.0% |
$55,837 – $59,186 | 2.0% |
$59,187 – $62,738 | 2.5% |
$62,739 – $66,502 | 3.0% |
$66,503 – $70,492 | 3.5% |
$70,493 – $74,722 | 4.0% |
$74,723 – $79,206 | 4.5% |
$79,207 – $83,958 | 5.0% |
$83,959 – $88,996 | 5.5% |
$88,997 – $94,336 | 6.0% |
$94,337 – $99,996 | 6.5% |
$99,997 – $105,996 | 7.0% |
$105,997 – $112,355 | 7.5% |
$112,356 – $119,097 | 8.0% |
$119,098 – $126,243 | 8.5% |
$126,244 – $133,818 | 9.0% |
$133,819 – $141,847 | 9.5% |
$141,848 and above | 10% |
The 2021-22 HELP repayment thresholds and rates:
INCOME | REPAYMENT RATE |
Up to $47,014 | No repayment |
$47,014 – $54,282 | 1.0% |
$54,283 – $57,538 | 2.0% |
$57,539 – $60,991 | 2.5% |
$60,992 – $64,651 | 3.0% |
$64,652 – $68,529 | 3.5% |
$68,530 – $72,641 | 4.0% |
$72,642 – $77,001 | 4.5% |
$77,002 – $81,620 | 5.0% |
$81,621 – $86,518 | 5.5% |
$86,519 – $91,709 | 6.0% |
$91,710 – $97,212 | 6.5% |
$97,213 – $103,045 | 7.0% |
$103,046 – $109,227 | 7.5% |
$109,228 – $115,781 | 8.0% |
$115,782 – $122,728 | 8.5% |
$122,729 – $130,092 | 9.0% |
$130,093 – $137,897 | 9.5% |
$137,898 and above | 10% |
Repay HELP Debt with voluntary HELP repayments
Help your HELP debt to disappear.
A great way to repay HELP debt is through voluntary repayments, when you can afford to wipe out a bit more of your debt. You can make Voluntary HELP payments at any time of the year.
If you repay HELP debt more quickly, you’ll be ready to start saving (or shopping) a lot sooner. Don’t put it off or it will really hurt your wallet later.
Important Notes
- Making a voluntary repayment doesn’t make you exempt from compulsory repayments unless your HELP debt is nil. Also, if your income is below the minimum threshold, you don’t have to make repayments.
- Your debt increases annually in line with the Consumer Price Index (CPI) on June 1st. This increase applies to the part of your debt that has remained unpaid for 11 months or more. By making a payment to reduce your HELP debt before June 1st, the ATO won’t be able to charge interest on the amount you have just paid off.
- If you make a voluntary payment, or pay off your HELP debt, it is generally better to do that before you lodge your next tax return. For advice that suits your situation, you should consult an tax agent (eg. if you are an Etax user, you can consult with our accounting team, anytime, with no appointments).
- If you ever find you have a large tax payable in your tax return due to your compulsory HELP repayment, you should check with your employer to ensure they are taxing you correctly each pay.
- Even if you move overseas to work temporarily or permanently, the ATO still expects you to make a HELP repayment if you meet the income thresholds. Please take a look at our articles on overseas HELP debt obligations if you fall into this category.