Higher Education Contribution Scheme (HECS)
HECS-HELP Loan is a loan available to eligible students enrolled in Commonwealth supported Further Education/University places.
This loan contributes to all, or part of, the students contribution amount of the total university place cost.
The Australian Government will pay the loan amount directly to your higher education provider on your behalf, and the Australian Tax Office will record the loan against your Tax File Number.
You begin repaying your HECS-HELP loan when your income exceeds the minimum threshold set down by the Australian Tax Office.
For the 2009-10 year, there is nothing to pay when a person income is under $43,151.
The repayment percentages vary depending on your income each year, and for the 2009-10 year the percentages are:
- 4.0% $43,151 ??$48,066
- 4.5% $48,067 ??$52,980
- 5.0% $52,981 ??$55,764
- 5.5% $55,765 ??$59,943
- 6.0% $59,944 ??$64,919
- 6.5% $64,920 ??$68,336
- 7.0% $68,337 ??$75,203
- 7.5% $75,204 ??$80,136
- 8.0% $80,137 and above
The percentage quoted is the amount of your income, that is deducted, based on the total of; taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.
HECS-HELP Discount is where you receive a 20% discount on the amount of your fees that are paid up-front, with a minimum fee payment for $500.
HECS Repayment thresholds: