How do I save enough to repay my HECS debt?

There are few steps you can take, and any savings will depend on your particular circumstances for example:

  • Putting your funds into a higher interest savings account;
  • Paying off other debt like credit cards or a mortgage or personal loan before your HECs; 

I generally suggest:

If you'd like more help with HECS or if you have any other financial questions, make a time with me for a 15 minute phone chat

Should I pay back my HECS debt early?

Whilst you can pay HECS/HELP debt back early, putting your funds into a higher interest savings account is generally a better option, long-term. 

If you'd like more help with HECS or if you have any other financial questions, make a time with me for a 15 minute phone chat

When will I have to start paying HECS/HELP?

This depends on:

  • when you started studies and,

  • Your HECS repayment income for that year. 

You have to start repaying your HELP/HECS debt through the taxation system once your repayment income is above the compulsory repayment* threshold, even if you are still studying.

Compulsory repayments continue until the HECs debt is repaid .

If you'd like more help with HECS or if you have any other financial questions, make a time with me for a 15 minute phone chat

How much HECS will I have to pay?

The amount of HECS debt you repay each year is a percentage of your income. The percentage increases as your income increases, so the more you earn, the higher your repayment will be.

The tax office calculates your compulsory repayment for the year and includes it on your income tax notice of assessment:

  • For 2017/18, the minimum repayment threshold is $55,874, with a 4% repayment rate, i.e. $2235. 

  • For 2018/2019, the government has introduced new repayment thresholds and rates. Under the new system, the minimum repayment threshold will be $45,000 with 1% repayment rate , i.e.  $450.

 If you access the Viva student loan calculator, you can estimate your repayment* amount for 2018/19.

Important: What is the repayment income?
*HECS/HELP repayment income is calculated as:

  • Taxable income +

  • Total net investment loss (which includes net rental losses) +

  • Total reportable fringe benefits amounts +

  • Reportable super contributions +

  • Exempt foreign employment income

If you'd like more help with HECS or if you have any other financial questions, make a time with me for a 15 minute phone chat