When do I pay HECS?

When do I have to pay HECS?

A HECS or HELP debt as it is now known is a loan program supported by the Common wealth to help fund your education.

Once you start earning more than $49,095 you will need to start making loan repayments. The amount of payments you make a dependent on what threshold you fall into.

The table below shows the various thresholds;

2012-2013 Repayment income

Repayment % rate

Below $49,096


$49,096 – $54,688


$54,689 – $60,279


$60,280 – $63,448


$63,449 – $68,202


$68,203 – $73,864


$73,865 – $77,751


$77,752 – $85,564


$85,565 – $91,177


$91,178 and above



It is a common misconception that these loans are interest free. There is no interest but the loan amount is indexed on the 1st of June each year. Over average this has been close to 3% for the last few years.

If you pay your debt off early through a lump sum, you can be eligible for a 10% discount on the amount you repay.

The main question we get asked is should you make additional payments on your loan or just pay the minimum required. If you can invest you money and get a better return than the indexing amount, then you may be better off doing this.

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