HELP / HECS repayments: how much comes out of your pay

If you have a HELP, HECS-HELP, VSL or similar study loan, repayments are collected through the tax system once your income passes a threshold.

Marginal system

Since 2025–26 repayments are marginal: nothing is repaid below the minimum repayment income ($67,000 in 2025–26, $69,528 in 2026–27). Above it you repay 15 cents per dollar, then 17 cents per dollar in a higher band, capped at 10% of your total repayment income.

This replaced the old system where the whole income was charged once you crossed the threshold.

Does paying it reduce my debt?

Yes. Compulsory repayments reduce your loan, which is indexed each 1 June. They are collected when you lodge your tax return and withheld from your pay if you declare the debt to your employer.