Income-based, automatic, and interest-free
A HELP debt has no interest. Instead, once your repayment income passes the threshold, a compulsory repayment is worked out at tax time and you pay it through the tax system — there is no separate bill and no minimum monthly payment to remember.
What counts as "repayment income"
Repayment income is more than just your salary. It's your taxable income plus a few add-backs:
- Taxable income (salary, wages, business income, etc.)
- Reportable fringe benefits
- Reportable super contributions (e.g. salary-sacrificed super)
- Net investment or rental losses
For most employees with a simple tax situation, repayment income is very close to taxable income — which is why the calculator asks for a single income figure.
The four-step flow
You earn above $67k
Your employer sees your HELP flag and starts withholding extra PAYG tax.
Extra tax is withheld
Through the year, that extra withholding builds up against your future repayment.
You lodge your return
The ATO calculates your actual compulsory repayment from your repayment income.
It's credited
The repayment reduces your HELP balance. Any over- or under-withholding is squared up in your assessment.
Tell your employer
When you start a job, tick that you have a HELP debt on your tax declaration. If you don't, no extra tax is withheld and you can land a large bill at tax time. If you're withholding but earning under the threshold, you may get it back as a refund.
Use the calculator to check your expected repayment, then compare it to the extra tax your payslip shows — a quick way to avoid a surprise at tax time.
Related
Frequently asked questions
Is HECS taken out of my pay automatically?
Yes. If you earn above the threshold and have told your employer about your HELP debt, extra tax is withheld through PAYG and the repayment is credited when you lodge your return.
What is repayment income?
Taxable income plus reportable fringe benefits, reportable super contributions and net investment losses. For most people it is close to taxable income.
Do I get a separate HECS bill?
No. There is no separate bill or interest — it is handled entirely through the tax system based on your income.