No compulsory payments just for studying
Being enrolled doesn't trigger HECS repayments. The loan sits in your account while you study — you pay nothing until your repayment income passes the minimum threshold.
The debt isn't idle, though — indexation on 1 June each year applies to the part unpaid for more than 11 months, so the balance creeps up with inflation even while you study.
The threshold for 2026-27: $69,528
For the 2026-27 income year, the minimum repayment threshold is $69,528. If your repayment income is at or below that, no compulsory repayment is due. Above it, repayments are calculated on the income over the threshold: 15 cents per dollar up to $129,717, then 17 cents per dollar up to $186,050, and 10% of your total repayment income beyond that.
The threshold moves with average earnings — it was $67,000 in 2025-26. A student working part-time while studying is very unlikely to hit it, though a graduate with a full-time job might.
What counts as repayment income for a student
Repayment income isn't the same as taxable income. It starts with your taxable income, then adds back reportable fringe benefits, total net investment losses, reportable super contributions, and any exempt foreign employment income.
For students the usual pieces are simple: wages from part-time work, taxable government payments, and any taxable scholarship income. Tax-exempt scholarships don't count at all. Youth Allowance is generally taxable, so it forms part of your repayment income, though for most students the total stays well under the threshold.
How repayments happen once you're over the threshold
Employers withhold HELP amounts from your pay through PAYG once your income is above the threshold — you'll see it on your payslip. Your tax return reconciles the year: too little withheld means the balance lands on your notice of assessment; too much means a refund.
You must start repaying even if you're still studying — the threshold test doesn't care. And you can always make voluntary repayments while studying to shrink the indexed balance.
FAQ
Q: I'm a full-time student with a part-time job. Will I have to pay HECS? A: Only if your repayment income for the year is above $69,528 (2026-27). For most students with part-time work it isn't. Your employer will withhold HELP tax automatically if your pay suggests you're over the threshold.