The income thresholds for various education debts, such as HELP/HECS, are inflation-adjusted each financial year.
Here's the 2024-2025 repayment income thresholds and rates:
| Repayment income (RI) thresholds | Repayment rate (% of repayment income) |
|---|---|
| Below $54,435 | Nil |
| $54,435-$62,850 | 1.0% |
| $62,851-$66,620 | 2.0% |
| $66,621-$70,618 | 2.5% |
| $70,619-$74,855 | 3.0% |
| $74,856-$79,346 | 3.5% |
| $79,347-$84,107 | 4.0% |
| $84,108-$89,154 | 4.5% |
| $89,155-$94,503 | 5.0% |
| $94,504-$100,174 | 5.5% |
| $100,175-$106,185 | 6.0% |
| $106,186-$112,556 | 6.5% |
| $112,557-$119,309 | 7.0% |
| $119,310-$126,467 | 7.5% |
| $126,468-$134,056 | 8.0% |
| $134,057-$142,100 | 8.5% |
| $142,101-$150,626 | 9.0% |
| $150,627-$159,663 | 9.5% |
| $159,664 and above | 10% |
You are required to start repaying your HELP/HECS debt when your income is above the minimum threshold for compulsory repayment, even if you are still studying. This is known as your Repayment Income and is made up of the following amounts, all of which are obtained from your annual income tax return:
Compulsory repayments are made through the taxation system, however you can also make voluntary repayments at any time to reduce your loan balance.
Depending on your individual circumstances, participation in a salary packaging arrangement for certain benefits may change the compulsory HELP debt repayment amount that you need to make for the financial year.
Often, this change to your compulsory HELP debt repayment will be a reduction. However, where this change is an increase, the tax savings that you may receive by salary packaging will usually cover this increase. This means you could effectively pay off your HELP debt with money you would otherwise have paid as tax to the Australian Taxation Office.
Disclaimer: This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, financial, or other professional advice based upon your own particular circumstances.