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Do the HELP debt repayment changes apply to me?
If you have an outstanding HELP or other student loan debt as at 1 July 2025 this change will apply to you. It will change the way you repay your student loan debt.
You will now be able to earn more before you need to start making compulsory repayments towards your debt and your repayments will be less.
The minimum repayment threshold will change from $54,435 in 2024-25 to $67,000 in 2025-26.
That means if you earn below $67,000 you will not be required to make an annual compulsory repayment. If you earn above $67,000 your repayments will be calculated only against the portion of your income above $67,000.
This new repayment system means that people will only have to make smaller compulsory repayments each year, and only commence making compulsory repayments once their income reaches a level where they can afford to do so.
Will this change only affect HELP debts?
No. As well as HECS-HELP, FEE_HELP, STARTUP-HELP, SA-HELP and OS-HELP, the changes will also benefit people with the following student loan debts:
- VET Student Loans
- Australian Apprenticeship Support Loans
- Student Start-up Loan
- Student Financial Supplement Scheme
How will this change happen?
Once legislation comes into effect, the new repayment system will apply from the 2025-2026 financial year.
You do not need to do anything.
Your compulsory repayment will be determined by the ATO when you lodge your tax return and your annual income is confirmed.
How will compulsory HELP debt repayments under the new marginal repayment system be calculated?
Once legislation comes into effect, the Government will change the HELP repayment system.
The compulsory repayment threshold will increase to $67,000. If you earn less than $67,000, you won’t need to make any compulsory repayments. You can still choose to make a voluntary repayment if you want to.
If you earn over $67,000 your repayments will be calculated on the portion of your income above $67,000.
| Income threshold | Marginal repayment |
| Below $67,000 | NIL |
| Income above $67,000 to $124,999 | 15c for each dollar over $67,000 |
| Income above $125,000 | $8,700 plus 17c for each dollar over $125,000 |
You can find out the impact on your compulsory repayments in 2025-26 based on your projected annual income by using the Making Repayments Fairer Estimator.
Making Repayments Fairer EstimatorWhen will I have to start repaying my HELP loan debt?
Once the legislation comes into effect, you will need to make compulsory repayments towards your HELP and other student loan debt when you earn more than the minimum repayment threshold of $67,000 for 2025-26.
How will this change how I repay?
It won’t change how you repay your debt.
HELP and other student loan debt repayments will still be made through the tax system and determined when you submit your tax return to the Australian Taxation Office (ATO).
How will this change affect me?
You can earn more before you need to make a compulsory repayment towards your HELP and other student loan debt, and your compulsory repayments will be lower. You will have more of your income available for living expenses.
Will this mean that it will take me longer to pay off my loan?
These changes will give you more disposable income now. There are many factors that can affect how long it takes to repay a loan e.g. periods of reduced income or career breaks. While you may pay back your debt over a slightly longer timeframe, you will only need to make higher compulsory repayments when your income reaches a point where you can afford to do so.
It is important to remember that there are no changes to HELP or other student loan debt voluntary repayments which can be made at any time. Voluntary repayments reduce your HELP debt as soon as they are processed by the ATO.
Why is the Government doing this?
The Government has been working to make the HELP and student loan repayment system better and fairer.
It recognises that there are some things in the way that people pay back their student loans that need fixing, especially at a time when so many Australians are doing it tough.
It particularly responds to calls from the independent review panel – the Australian Universities Accord – that recommended in its Final Report (February 2024) that HELP repayment arrangements should be reformed.
Recommendation 16b stated “reducing the financial burden of repayment on lower-income earners and limiting disincentives to work additional hours by moving to a system of HELP repayment based on marginal rates”.