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Loan repayment

How do I repay my HELP debt?

There are two ways to repay your HELP debt directly through the Australian Taxation Office (ATO).

You begin to pay back your HELP debt through the tax system once you earn above the compulsory repayment threshold. The compulsory repayment threshold is different each year. 

The compulsory repayment threshold for the 2021-22 income year is $47,014.

The compulsory repayment threshold for the 2022-23 income year will be $48,361.

You must advise your employer if you have a study or training support loan. Your employer will use the PAYG withholding system to cover your compulsory repayment amount. You will not have to make a compulsory repayment if you are entitled to a reduction of the Medicare levy or do not have to pay the Medicare Levy. If you do not have to make a compulsory repayment, you may ask your employer not to withhold additional amounts from your pay by completing the Medicare levy variation declaration form.

Voluntary repayments are in addition to compulsory repayments and are not refundable. You can make a voluntary repayment to the Australian Taxation Office (ATO) at any time. 

Your HELP debt includes any unpaid:

  • HECS-HELP,
  • FEE-HELP,
  • VET FEE-HELP,
  • OS-HELP
  • SA-HELP and
  • VET Student Loans (before 1 July 2019)
  • Indexation 

From 1 July 2019 VET Student Loan (VSL) debt was separated from HELP. Students studying through an approved VET provider from 1 July 2019 will have a VSL debt. 

 

How much will I repay?

The more you earn,the higher your repayment will be.

When you do your tax return, the ATO will calculate your income for the year and tell you how much your compulsory repayment is.

 

2021-2022 Repayment threshold Repayment % rate
$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 10.0%
 

 

2022-2023 Repayment threshold Repayment % rate
Below $48,361 Nil
$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 10.0%

Your renewable HELP balance and re-borrowing your repayments

Your HELP balance is renewable. Starting from the 2019-20 income year, any compulsory or voluntary HELP or VSL repayments made will top up a person's HELP balance. These repayments will be applied to a person's HELP balance after they have completed their 2019-20 tax return (and each year thereafter) and been issued with a notice of assessment from the ATO. Repayments can be re-borrowed in the future, up to the current HELP loan limit. For more information on the new combined HELP loan limit and renewable HELP balance visit the combined HELP loan limit page.

I am making repayments, why aren't they showing?

While you might have weekly or fortnightly amounts coming out of your pay, the compulsory repayment on your HELP debt will only occur once you do your tax return.

What happens if I can’t afford repayments?

If making your compulsory repayment will cause you serious financial hardship, you can apply to the ATO to defer your repayment.

Can I cancel my HELP debt?

No. Once you have a HELP debt, you must repay it unless you meet 'special circumstances'.

What happens if I go bankrupt?

Your HELP debt does not disappear if you go bankrupt.

Repayments of your HELP debt will restart when you earn over the minimum repayment threshold.

What happens to my HELP debt if I die?

A deceased person will only make any compulsory HELP repayments for the period before their death. A trustee or executor will need to make these compulsory repayments.

The rest of the HELP debt is cancelled upon their death.

Gabriella is already repaying her HELP debt and will get another HELP loan to pay for her master's. Read her story.