HELP Debt Reduction for Rural Health Practitioners Frequently Asked Questions

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About the Program

There are two types of assistance under this program:

  • Waiver of indexation on your outstanding HELP debt
  • HELP Debt Reduction

On 1 June each year indexation is applied by the Australian Taxation Office (ATO) to an individual’s outstanding HELP debt balance.

If your waiver application is successful, you won’t have indexation applied to your outstanding HELP debt. This applies for every day you work as an eligible health practitioner in a rural, remote, or very remote location.

If your HELP debt deduction application is successful, your HELP debt will be reduced by the lesser of two values:  

  • cost of the initial medical or nurse practitioner degree, and
  • outstanding HELP debt balance when you first commenced living and working in an eligible area.

The extent of the reduction depends on the duration of your qualification and the time spent living and working in a rural, remote or very remote location. 

Doctors and Nurse Practitioners living and working in rural, remote, or very remote areas of Australia can access both types of assistance. To be eligible you need to:

  • have completed an eligible course of study and received the required qualifications  
  • have a HECS-HELP debt or a FEE-HELP debt in relation to the course of study
  • hold a registration or an accreditation as a medical or nurse practitioner for the course of study
  • have lived and worked in a rural, remote or very remote location (based on the Modified Monash Model classification)
  • for doctors, have worked at least 24 hours per week within a general practice.
  • For HELP debt reduction, lived and worked in an eligible location for the service period.  

For further information please see eligibility FAQs.  

Indexation Waiver on HELP Debt

On 1 June each year, indexation is applied by the Australian Taxation Office (ATO) to an individual’s  outstanding HELP debt balance.  If indexation is applied to your HELP debt balance on 1 June, your HELP debt will increase by the amount of indexation.

The waivers of indexation on your outstanding HELP debt will remove any indexation applied to your outstanding HELP debts based on how many days you were eligible during that year.

The indexation applied on 1 June will cover the period from 1 June in the previous calendar year until 31 May in the current calendar year. If your eligible working period covers every day in that period, the full amount of indexation will be waived.

The indexation waiver does not reduce your HELP debt other than the indexation amount for the eligible period.   

Your HELP loan account with the ATO contains a record of your HELP debt including the indexation that has been applied to your HELP debt. You can access your HELP debt account with the ATO online via myGov.

You can view the amounts of indexation applied to your debt on this transaction record. To estimate your potential indexation waiver amount you:

  • Determine the number of eligible weeks you lived and worked in a rural, remote or very remote location
  • Convert weeks into days (1 eligible week counts for 7 days)
  • Divide your eligible number of days by the number of days in the calendar year  
  • Multiply this by the amount you were indexed in that same year.  

This is further explained in the example below.  

EXAMPLE: How to calculate your indexation waiver
Dr Aisha starts working in an eligible MM4 rural location on 30 January 2022 and has been determined eligible under the program. On 1 June 2022, $222.89 of indexation is applied to her HELP debt.

Dr Aisha applies for the indexation waiver after completing her first full year of eligible work. Her 2022 indexation waiver is based on the number of eligible days she worked before 1 June 2022.

From 30 January to 31 May 2022, there are 18 weeks. That’s 18 weeks × 7 days = 126 eligible days.

Her waiver is calculated like this: (126 eligible days/365 days in a year) × $222.89 = $77.00 waived. This amount is removed from her HELP debt.

Dr Aisha can reapply each year after completing another year of eligible work to have more indexation waived.

The indexation waiver only applies for eligible days that fall on or after 1 January 2022.  

Indexation starts on 1 June each year. So, only the eligible days from 1 January to 31 May 2022 are counted to calculate the waiver for the 2022 indexation year. This may result in only a partial waiver of the total indexation applied on 1 June 2022. For all subsequent years, indexation waivers will be calculated based on the number of eligible days in the full indexation year (1 June to 31 May). 

HELP Debt Reduction

If your HELP Debt Reduction application is successful, your HELP debt will be reduced by the lesser of two values:  

  • the total HELP debt you incurred for your eligible medical or nurse practitioner qualification
  • the amount of HELP debt you had outstanding at the time you started eligible work in a rural, remote or very remote location (on or after 1 January 2022).

Whether it is reduced by 50% or 100% depends on the length of your degree, the region in which you have lived and worked in and time you have lived and worked in that region.  

if successful, your HELP debt will be adjusted through the tax system by the Australian Taxation Office (ATO). The adjustment may have two parts:

  • Debt reduction: The approved HELP debt reduction will be directly applied to your outstanding HELP debt.
  • Possible refund: When any HELP debt reduction is applied, it may bring the balance of your ATO HELP loan account into credit.  If you have no other tax liabilities or Commonwealth debts, you will get a refund through the usual taxation processes. 

EXAMPLE: Dr Amina – 50% HELP Debt Reduction

Dr Amina finished a 4-year medical degree where she used HELP loans to pay her $48,000 tuition fees. She had a HELP debt balance of $40,000 when she began working in Mildura (MM 4 – Rural) on 1 February 2022.

After 2 years, she applied for the HELP debt reduction program. During that time, she had repaid $18,000 through the tax system, leaving her with $22,000 still owing.

Because she met the 2-year requirement for a rural location, Dr Amina was eligible for a 50% reduction, equal to $20,000 (50% of her original $40,000 debt). This amount was calculated on the lesser of the two amounts provided below:

  • the HELP debt incurred for the medical practitioner qualification ($48,000)
  • the amount of outstanding HELP debt at the commencement of your eligible service ($40,000)

Therefore $20,000 was recredited towards her outstanding accumulated HELP debt, leaving her new HELP debt balance at $2,000.

The amount used to calculate your HELP debt reduction is the lesser of:

  • the total HELP debt you incurred for your eligible medical or nurse practitioner qualification
  • the amount of HELP debt you had outstanding at the time you started eligible work in a rural, remote or very remote location (on or after 1 January 2022).

You can check these amounts by:

  • using the myHELPbalance portal to see the HELP debt linked to your course of study (use the “export full statement” function)
  • viewing your HELP loan account in ATO Online Services in myGov to check your outstanding balance at the time you began eligible work. 

You can apply once you’ve completed the required period of eligible work in a rural, remote or very remote location. This varies depending on the length of your degree and the location you are living and working. 

Your application must include supporting evidence to verify your work history (e.g. employment documentation) and residential details. If your eligible work period or proof of residency in a rural, remote or very remote area cannot be confirmed, your application will not be approved

Yes. You must continue to make compulsory repayments as usual, based on your income. Your employer will continue to withhold additional tax to cover these repayments.

Further information can be found on the Australian Taxation Office website.

No. Only the HELP debt you had when you started work in a rural, remote or very remote location (on or after 1 January 2022) is eligible for consideration.

The Australian Taxation Office (ATO) is responsible for the management of HELP debts. Once your application is approved, your HELP debt account at the ATO will be amended. If this creates a credit the ATO may refund that amount to you.

This means the credit will go to your Income Tax account. It will count as a credit for your income tax assessment for that tax year. Once the income tax assessment is done, if you still have a credit, it will be sent to your nominated bank account with the ATO. The ‘credit’ amount will also appear on your ATO HELP debt statement that can be viewed on ATO Online via your myGov account.
 

Yes. You may apply for the program as long as you had an outstanding HELP debt on the date you became eligible. This means the date you commenced living and working in the location provided it is on or after 1 January 2022. If your HELP debt was fully paid off before 1 January 2022 you are not eligible for the program.

No. The reduction comes from the cost of your course of study and the HELP debt you had when you first became eligible. It does not depend on when your application was approved or when you submitted your tax return. application is approved.

No. You will receive notification if you are approved for a waiver of indexation or HELP debt reduction however, you will need to monitor your HELP loan account in ATO Online Services in myGov  to determine when the reduction is applied.

EXAMPLE: Dr Thomas – 50% HELP Debt Reduction

Dr Thomas completed a 6-year medical degree, where he used HELP loans of $120,000 to pay his tuition fees. He  graduated with a HELP debt of $100,000. He finished his internship and hospital rotations and  became a fully registered doctor in March 2020.

In 2021, he moved to Mudgee, NSW—a MM 4 rural location—to work in a general practice. 

Although Dr Thomas had been working in a rural location since 2020, he was not yet eligible for the HELP debt reduction initiative because:

  • the program only applies to eligible work completed on or after 1 January 2022, and
  • medical practitioners must have completed at least three years of postgraduate clinical experience.

Dr Thomas met the three-year postgraduate requirement in March 2023. At that time, his outstanding HELP debt was $80,000. From this point forward, his work in Mudgee began counting towards the HELP debt reduction initiative.

After three more years of work in Mudgee, he qualified for a 50% HELP debt reduction. This was due to his 6-year degree and MM 4 location.

The reduction was calculated as 50% of the lesser of:

  • his HELP debt at the time he became eligible ($80,000)
  • the HELP debt he originally incurred for his degree ($120,000).

Dr Thomas was eligible for a $40,000 reduction.

By the time he applies in 2026, he will have repaid $30,000. His remaining debt will be $50,000. After the second 50% reduction of $40,000 is applied, his new HELP debt balance is $10,000.
 

EXAMPLE: Dr Mary – 100% HELP Debt Reduction
Dr Mary commenced a law degree but changed her study path and completed a 4-year medical degree. Her course fees for medicine which were deferred to HELP loans were $120,000. Including her previous law study, she graduated with a total HELP debt of $128,000.

After becoming a registered doctor and gaining three years of clinical experience, Dr Mary started at the Wadeye Health Clinic in NT. This is a MM 7 very remote area.

Dr Mary worked continuously in Wadeye for 2 years, meeting the required service period for a 100% HELP debt reduction based on her 4-year degree and very remote location.

Her reduction was calculated as 100% of the lesser of:

  • her HELP debt at the time she became eligible ($128,000)
  • the HELP debt incurred for her medical degree ($120,000).

Dr Mary was eligible for a $120,000 HELP debt reduction.

After applying in 2025, Dr Mary’s remaining debt was $128,000. The $120,000 reduction was applied, leaving her with a new HELP debt balance of $8,000.
 

Program eligibility

Rural, remote and very remote locations in Australia are classified using the Modified Monash Model (MMM). The MMM rates remoteness and population size from MM 1 to MM 7. MM 1 stands for major cities, while MM 7 indicates very remote communities. These classifications are used to identify areas with limited access to medical services. They also help guide workforce planning and incentive programs.

The following conditions apply: 

  • Paid leave: Any paid leave taken in an eligible location counts towards the time needed for HELP debt reduction or indexation waiver. This includes annual leave, personal leave, paid parental leave, and similar paid entitlements.
  • Unpaid leave: Periods of unpaid leave do not count towards meeting the time requirement.

This approach is consistent with how similar Commonwealth workforce incentive programs operate. 

As part of the application process you will be asked to provide details of unpaid leave. 

If you work across both rural (MM 3–5) and remote or very remote (MM 6–7) locations, the HELP Debt Reduction Program allows your application to be assessed by proportioning the time spent in each location.

EXAMPLE: Dr Louis – Working across different locations
Dr Louis completes a 4-year degree. He works 1 year in a remote (MM 6) location and 1 year in a rural (MM 4) location.

For a 100% HELP debt reduction he requires either:

  • 2 years of work in a remote or very remote location, or
  • 4 years of work in a rural location.

For a 50% HELP debt reduction he requires either:

  • 1 year of work in a remote or very remote location, or
  • 2 years of work in a rural location.

Dr Louis’ work in an MM 6 and an MM 4 location is proportioned and he is found eligible for a 50% HELP debt reduction. 
 

For a medical practitioner - yes. To be eligible for the indexation waiver or a HELP debt reduction, medical practitioners must have completed at least 36 months of post-qualification experience.

The applicant meets this requirement if they have current Ahpra registration and at least 36 months have passed since that registration date. You can start counting eligible rural, remote, or very remote work for the program only after you meet this experience requirement.

For a nurse practitioner – No. But you need to have finished the right post-graduate qualification and be registered as a Nurse Practitioner with Ahpra.
 

No. International student loans are not eligible for the program. The program applies only to debts from the Higher Education Loan Program (HELP), as defined in the Higher Education Support Act 2003.

Debts that can be reduced under this initiative include those in your HELP debt. These are loans from the Commonwealth that may have come from assistance under the following:

  • HECS-HELP
  • FEE-HELP
  • OS-HELP
  • SA-HELP
  • STARTUP-HELP
     

No. The program only includes medical and nurse practitioners. A similar program also operates for teachers working in very remote locations.

No. To be eligible, a registered nurse must finish an NMBA-approved program. This program leads to an endorsement as a nurse practitioner. 

Bachelor of Nursing qualifications don't get the 50% or 100% reduction.

Work done before you get your postgraduate degree (like a Master in Nursing) does not count towards reducing your HELP debt or waiving indexation.

You may be eligible depending on your qualifications and the nature of care you provide. To qualify you must be working as a medical practitioner within a general practice setting. You must also be living and working in a location classified as MM 3 to MM 7 under the Modified Monash Model.

The Modified Monash Model is based off the Australian Statistical Geography Standard (ASGS). This uses the ‘Geographic Australia’ definition of Australia. This definition does not include Australian Antarctic Territory.

To be eligible, you must work as a medical or nurse practitioner within a general practice setting.
General practice includes organisations that:

  • manage a wide range of acute and chronic health problems
  • provide ongoing care for chronic conditions
  • offer preventive health services (e.g. screening, immunisation).

This usually means a medical clinic or primary health service. However, in some cases, hospital-based roles in rural, remote or very remote locations may also qualify if the hospital provides coordinated, team-based care meeting the above criteria. 
 

The relevant years of service will be what the full time equivalent of the course would have been. For example, to get a reduction on their HELP debt, a person studying medicine part-time for 10 years, instead of the usual 6 years full-time, must complete this:

  • 3 years in very remote or remote (MM 6-7) – 100%
  • 1.5 years in very remote or remote (MM 6-7) – 50%
  • 6 years in rural (MM 3-5) – 100%
  • 3 years in rural (MM 3-5) – 50%.
     

Application process

You can apply using the myHELP Reduction Applicant Portal.  Further information about applying is available on our Health Practitioner HELP Debt Reduction page.

You will need a number of supporting documents to submit your application. You can find out what documents are required on our Health Practitioner HELP debt reduction page. Applicants should ensure they have the required documentation before making an application. Your application will be rejected if you do not provide the required supporting documentation.

You can apply for the indexation waiver each year, after completing each year or part thereof of eligible work. 

Waivers of indexation will be applied retrospectively.

Information on how to view your loan account online and download you ATO HELP debt statement is available on the ATO website.

You will not be disadvantaged if your application is not processed before indexation is applied on 1 June. Reductions may be retrospectively applied to your HELP debt to when you became eligible. This means that the indexation on your HELP debt account will adjust based on the new value of your debt as of 1 June. You can also reverse indexation later if you qualify for a waiver.

If you application is not approved you will be provided with reasons as to why you were deemed ineligible.

If you believe that this is incorrect and have further information to provide, you may email the Department of Education at HealthPractitionerHELP@education.gov.au requesting a review.

Glossary

Your accumulated HELP debt refers to the HELP debt that remains unpaid at a point in time.

HELP debt can be incurred through study in a Commonwealth supported study place (HECS-HELP) or a full fee-paying place (FEE-HELP) if you defer payment of your student contribution amount or tuition fee amount.

The ATO keeps track of any HELP debt you owe to the Commonwealth in your HELP debt account. Your HELP debt account contains a record of your incurred HELP debts and other transactions made on your account such as compulsory repayments, voluntary repayments and indexation.

You can determine your accumulated HELP debt at a point time (in other words your outstanding HELP debt at a point in time, e.g., when you commenced your placement), following the dates recorded next to each transaction record on your account (the dates are on the left-hand side and the amount outstanding is on the right-hand side of each transaction record, under the heading ‘balance’). You can access this account online through ATO Online Services via your myGov account.

General practice includes organisations that:

  • manage a wide range of acute and chronic health problems
  • provide ongoing care for chronic conditions
  • offer preventive health services (e.g. screening, immunisation).

This usually means a medical clinic or primary health service. However, in some cases, hospital-based roles in rural, remote or very remote locations may also qualify if the hospital provides coordinated, team-based care meeting the above criteria.

On 1 June each year, indexation is applied to the part of an accumulated study and training debt that is older than 11 months by the Australian Taxation Office (ATO). HELP debt indexation helps maintain the real value of education by adjusting it in line with changes in the cost of living as measured by the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). More information about indexation is available on the StudyAssist website.