What is HECS-HELP?
HECS-HELP is the government loan scheme for university tuition. Repayments are based on your income and collected through tax.
HECS-HELP is the Australian Government's loan scheme that lets eligible students defer their university tuition fees. You don't pay anything upfront — instead, you accumulate a debt that's repaid through the tax system once your income exceeds a threshold.
The debt is indexed to inflation (CPI as of 1 June 2023, capped at the lower of CPI or the Wage Price Index) each year on 1 June. Compulsory repayments kick in once your repayment income exceeds the minimum threshold.
Key facts
- •No upfront fees — the government pays your uni and you repay later
- •Repayments start when your income exceeds the minimum threshold (around $54,435 in 2025-26)
- •Repayment rate is 1-10% of your total income depending on how much you earn
- •Indexed annually on 1 June — now capped at the lower of CPI or Wage Price Index
- •Voluntary repayments can reduce your balance faster (no bonus discount anymore)
Try the calculator
HECS Repayment CalculatorFrequently asked questions
Is HECS interest-free?
Technically yes — there's no interest rate. But the debt is indexed to inflation each year, so it does grow over time. The indexation is now capped at the lower of CPI or the Wage Price Index.
Does HECS affect my borrowing capacity?
Yes. Lenders factor in your HECS repayments when assessing how much you can borrow for a mortgage. Higher HECS debt means lower borrowing power.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.