HECS-HELP Debt & Your Tax Return
If you have a HECS-HELP or other study loan, your compulsory repayments are worked out through your tax return once your income reaches a certain level. Here is how it works in plain English.
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When do you have to repay?
Compulsory repayments start when your repayment income is above the minimum repayment threshold. For the 2026–27 income year, that threshold is $69,528.
Since the 2025–26 income year, repayments are calculated only on the income above the threshold (a marginal system), instead of on your whole income.
What is “repayment income”?
It is more than just your taxable income. It can also include items such as reportable fringe benefits, reportable super contributions, net investment losses and some exempt foreign income.
How repayments are collected
- Your employer withholds extra tax from your pay if you tell them you have a study loan
- The final amount is worked out when your tax return is assessed
- If too little was withheld, you may have a bill; if too much, it can reduce your debt
Indexation
Your loan balance is indexed each year on 1 June to keep pace with prices. Making voluntary repayments before 1 June can reduce the amount indexed.
Voluntary repayments
You can make extra repayments at any time. Whether this is a good idea depends on your other goals – for example, saving for a home or paying off other debts.
How UV TAX helps
- Lodge your tax return with the correct repayment income
- Check your employer is withholding the right amount
- Explain bills or changes to your debt
- Help if you are moving overseas with a study loan
⚠️ General information only – not tax or legal advice. Repayment thresholds and rates change each year, and individual circumstances vary. This page is a simple overview as at November 2026 and does not consider your personal circumstances. Tax laws, rates and thresholds change regularly. Please get advice for your situation before acting.
Questions about your study loan?
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0466 268 405Frequently asked questions
What is the HELP repayment threshold for 2026–27?
The minimum repayment income for 2026–27 is $69,528.
How are repayments calculated?
Since 2025–26, compulsory repayments are calculated only on income above the threshold.
Is my HELP debt indexed?
Yes, on 1 June each year.
Do I need to repay if I move overseas?
People living overseas may still have repayment obligations. Get advice before you move.
Related
General information current as at November 2026.