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Introduction

Since 1989, student contributions through the Higher Education Contribution Scheme (HECS) and its replacement, the Higher Education Loan Program (HELP), have been an integral part of the Australian higher education system.

This research paper contains a brief summary of the development of HELP and related schemes, including the VET Student Loan Scheme, and includes some relevant statistics, as well as a detailed chronology of changes to the scheme. This publication does not cover other income-contingent student loans, such as Trade Support Loans and Student Start-up Loans. For a chronology of changes to student income support arrangements, see the Parliamentary Library publication Student income support: a chronology.[1]

Basic features of the Higher Education Loan Program (HELP) and related loans schemes

HELP provides loans to students studying approved higher education courses to assist in the costs of their study. The VET Student Loans scheme (and the former VET FEE-HELP) provides similar loans to students studying approved higher level vocational education and training (VET) courses. Eligibility is limited to students who are Australian citizens, New Zealand citizens who meet specific residency and other criteria, and permanent humanitarian visa holders provided they are resident in Australia for the duration of their study. Permanent residents holding non-humanitarian visas are generally not eligible for HELP loans, unless they are undertaking bridging study for overseas-trained professionals, when they are eligible for FEE-HELP.

The major category of loan under the HELP scheme, HECS-HELP, is available to students enrolled in Commonwealth supported places (CSPs), and covers most domestic undergraduate and some coursework postgraduate students studying at Australian universities. Students in CSPs are generally required by their institution to contribute to their course costs. Maximum contribution amounts vary according to the field of study band for each unit. The maximum student contribution for each year from 1989 to 2021 is shown in Appendix A. Students can elect to pay this contribution up-front or can take out a HECS-HELP loan to cover the cost.

FEE-HELP is available to domestic full fee-paying higher education students to pay their tuition fees. These students are generally studying at private higher education institutions or are undertaking postgraduate coursework qualifications for which there is no CSP. Similarly VET Student Loans cover tuition costs for students undertaking approved VET courses.

SA-HELP provides a loan to pay all or part of the student services and amenities fee charged by most higher education providers.

Students enrolled in CSPs who undertake part of their studies overseas (typically on exchange or to undertake a work-based placement) are able to access OS-HELP. These loans are intended to cover costs such as airfares and accommodation, but there is no requirement for students to justify the loan amount (up to the maximum available).

All these loans are interest free, but the outstanding amount is indexed annually by the Consumer Price Index (CPI) to maintain the real value of the debt. An individual commences repaying their loan when their taxable income reaches a certain threshold. The rate at which the debt is repaid rises according to taxable income. The income thresholds and repayment rates for each tax year from 1989–90 to 2020–21 are shown in Appendix B.

Brief history of the HELP scheme

The origin of the Higher Education Contribution Scheme (HECS)—the Committee on Higher Education Funding Committee

In December 1987, the Australian Government announced its commitment to expanding the capacity and effectiveness of the higher education sector but that budgetary circumstances meant it would be necessary to consider sources of funding involving the direct beneficiaries of higher education.[2] It established the Committee on Higher Education Funding (Wran Committee) to develop options and make recommendations for possible funding schemes which could involve contributions from students, graduates, their parents and employers.

The Wran Committee reported in April 1988, recommending a contribution scheme whereby higher education students would pay through their income tax obligations an additional two per cent of taxable income until they met 20 per cent of the cost of their higher education.[3] The requirement to pay would arise only when the student's personal taxable income exceeded the average earnings of all working Australians.[4] The Committee also recommended three levels of contributions: $1,500, $2,500 and $3,000 per annum (pa) depending upon the cost of the course.[5] The report canvassed the possibility of allowing institutions to vary these charges by 15 per cent above and below the standard.[6] Both the charges and the level of income contingency were to be indexed to maintain their real value, rather than imposing any interest payments.[7] The report suggested that a discount be applied to 'up-front' payments, and that this discount would need to be around 40 per cent to be attractive in financial terms.[8]

In the August 1988 Budget, the Government announced that it had accepted most of the Wran Committee's recommendations, and that it would introduce the HECS on 1 January 1989.[9] However, the scheme would have only one rate of contribution ($1,800 in 1989) and an up-front discount of 15 per cent.[10] Unlike other Commonwealth debts, such as social security or taxation debts, HECS debts were discharged on death.[11] The legislative authority for the scheme was contained in the Higher Education Funding Act 1988.

Modification of HECS

In the years following its introduction there were a number of minor changes to HECS which are detailed in the Chronology below including:

• changes to the repayment rates and thresholds in 1990, 1992, 1994, 1996 and 1997
• increased incentives for up-front payments, with discounts also introduced for voluntary repayment of debt and
• the introduction of new schemes based on HECS repayment arrangements for specific groups of students, such as the Open Learning Deferred Payment Scheme (OLDPS) in 1994, and the Postgraduate Education Loans Scheme (PELS) and the Bridging for Overseas-Trained Professionals Loan Scheme (BORPLS) in 2002.

Introduction of the Higher Education Loans Program (HELP)

In the 2003–04 Budget, the Government announced major changes to the funding arrangements for higher education, which included the introduction of a new Higher Education Loans Program (HELP).[12] These changes were legislated in the Higher Education Support Act 2003 (HESA).

HECS was incorporated into the program as HECS-HELP, while FEE-HELP was introduced for full fee-paying courses, including those previously covered by OLDPS, PELS and BORPLS. Universities were given the flexibility to charge student contributions under HECS-HELP up to a maximum rate based on course funding clusters (fields of study bands), and repayment thresholds and rates were significantly revised. OS-HELP was introduced, enabling students studying overseas temporarily as part of their Australian qualification to take out a loan to cover costs such as airfares and accommodation.[13]

The HELP scheme was subsequently expanded, with the introduction of VET FEE-HELP in 2008, to provide loans on the same basis as FEE-HELP to students studying certain higher level VET qualifications.[14] Originally proposed in 2009, SA-HELP was introduced in 2012 to allow students to take out a HELP loan to cover their student services and amenities fees.[15] Following compliance issues with VET FEE-HELP, it was replaced by the VET Student Loans scheme in 2017.[16]

When they were established, both FEE-HELP (for undergraduate students) and OS-HELP attracted a 20 per cent loan fee. The initial proposed legislation did not include a loan fee, but incorporated an indexation cost of 3.5 per cent per annum in addition to the CPI on outstanding debts from these loans, presumably in recognition of the real costs of income-contingent loans. This was amended during debate to become a loan fee instead.[17] The OS-HELP loan fee was abolished in 2010, but in 2011 the FEE-HELP loan fee was increased to 25 per cent (although the VET FEE-HELP loan fee remained at 20 per cent).[18]

A limit of $50,000 was placed on the total amount of money which could be borrowed under FEE-HELP. This was increased in 2007 to $80,000, or $100,000 (indexed) for courses in medicine, dentistry or veterinary science.[19] When VET FEE-HELP was introduced, loans under this scheme were also included under the FEE-HELP loan cap.[20]

The 2003–04 Budget announced that as part of these changes students would only be entitled to a maximum of five years full-time (or equivalent) study in a CSP (and hence eligible for HECS-HELP).[21] This was later legislated for an entitlement of seven years.[22] The restriction was removed in 2012.[23]

Initially, there was a discount of 20 per cent for up-front payment of student contributions and a discount of 10 per cent for voluntary repayment of HELP debt. In the 2011–12 Budget these discounts were reduced to 10 per cent and 5 per cent respectively, and later, in the 2013–14 Budget, it was announced that that they would be abolished altogether, although this was not legislated until 2015.[24]

HECS-HELP and national priority fields of study

As part of the 2003–04 Budget announcements, one of the student contribution rates introduced was a ‘national priorities’ band, which provided for reduced student contributions for those studying in designated priority fields, initially education and nursing.[25]

In an attempt to encourage more students to study maths and science, the 2008–09 Budget included maths and science in the national priorities band, thus reducing the maximum student contribution for students in these areas.[26] In addition, students graduating from these fields were eligible for a 50 per cent reduction in their HECS-HELP repayments for up to five years (known as HECS-HELP benefit) if they worked in an occupation related to their studies, including teaching.[27] Early childhood education graduates also received HECS-HELP benefit if they worked in a relevant occupation and a designated location.[28]

The 2009–10 Budget extended the reduction on HECS-HELP repayments to education and nursing graduates who worked in these fields—although rather than a 50 per cent reduction they were entitled to a flat rate reduction. However, at the same time these fields were removed from the national priorities student contribution funding cluster, thus increasing the maximum contributions students in these areas were required to pay.[29]

The national priorities band for student contributions was discontinued in 2013, while removal of HECS-HELP benefit for all graduates was announced as part of the 2014–15 Budget changes, but not legislated until 2016.[30]

Subsequently, incentives were introduced in 2020 for teachers and early childhood educators with education degrees to work in very remote locations.[31] Indexation of their HELP debt is paused for the period they are working in these locations, and if they work in such areas for at least four years full-time equivalent in a six-year period, they receive a significant reduction in their HELP debt.[32] This is the lesser of the amount of debt outstanding at the beginning of the period, and the cost of five years full-time of their education course.[33]

Cessation of VET FEE-HELP

Rapid growth in the number of VET FEE-HELP loans from 2012 to 2015 raised concerns about potential abuse of the system.[34] Some additional constraints were imposed on providers in 2015, while the Government undertook consultations on the future of the program.[35] Following that process, legislation was introduced in 2016 to cease VET-FEE HELP and replace it with the VET Student Loans Scheme.[36]

While existing students maintained access to VET FEE-HELP until 31 December 2018 under grandfathering provisions, the VET Student Payment Arrangements (Miscellaneous Amendments) Act 2021 requires providers to report any such debts before 1 January 2022 in order to finalise possible government or student liabilities.[37]

Initially, VET Student Loan debts were included in HELP debts, which meant is was not possible to monitor the effectiveness on repayments of some of the changed requirements. Therefore, from 1 July 2019, VET Student Loan debts were separated from HELP debts.[38]

Changes to repayment arrangements

The 2014–15 Budget proposed lowering the repayment threshold and introducing a new rate of two per cent for the initial repayment band, which was legislated in 2016.[39] It also proposed indexing HELP debt at the ten-year bond rate, rather than the CPI, but this was not legislated.[40]

A proposal to recover student loan debt from those residing overseas was included in the 2015–16 Budget.[41] This was legislated in 2015, and requires those with a study or training loan who are intending to live and work overseas for more than six months in any 12 months to notify the Australian Taxation Office within seven days of leaving Australia.[42] They are then required to lodge a worldwide income (or non-income) advice each tax year.[43]

Further changes to repayment and loan arrangements were introduced in the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018, including:

• significant changes to the repayment rates and income thresholds, reducing the minimum income threshold for compulsory repayments from $51,956 in the 2018–19 income year to $45,880 for 2019–20 and raising the maximum repayment rate from 8 to 10 per cent
• indexing the repayment income thresholds to the CPI rather than Average Weekly Earnings (AWE) and
• introducing a new HELP loan limit, which covered all loan types, not just FEE-HELP.[44]

Job Ready Graduates Package

In June 2020, the Government announced its Job Ready Graduates Package, the major component of which was a significant reshaping of the funding for CSPs.[45] The purpose of this change was to ‘address the misalignment between the cost of teaching a degree and the revenue that a university receives to teach it’ and also ‘incentivise students to make more job-relevant choices, that lead to more job-ready graduates, by reducing the student contribution in areas of expected employment growth and demand.’[46] The HELP-related elements of the Package were enacted in October 2020.[47]

As can be seen in Appendix A this potentially has a considerable impact on HECS-HELP debt for some students. For example, a student studying humanities or social science courses in 2020 was liable for a student contribution of $6,684 pa, whereas someone commencing the same courses in 2021 has a student contribution of $14,500 pa. On the other hand, someone studying agriculture or mathematics had a contribution of $9,527 pa in 2020, which is reduced to $3,950 pa in 2021. Continuing students will pay the lesser of the amount their course is liable for in 2021 and the indexed 2020 levels. Thus, for example, a student continuing in communications qualification can only be charged $6,804 pa in 2021, while a new student in the same course could pay $14,500 pa.[48]

Other elements of the Package also had an impact on HELP arrangements. The FEE-HELP loan fee was reduced from 25 per cent to 20 per cent, and student protection requirements already imposed on non-university FEE-HELP providers were extended to CSP providers.[49] In addition, amendments introduced during the passage of the legislation saw the reintroduction of the 10 per cent discount for upfront payment of HECS-HELP contributions, and of the restriction of entitlement to a CSP to seven years full-time study (or equivalent).[50]

In addition, students who do not successfully complete 50 per cent or more of the units in a course of study they are enrolled in, after the completion of at least eight units (one year full-time) in a bachelor or above qualification, or four units in a sub-bachelor degree, are ineligible to continue in a CSP (and hence access a HECS-HELP loan) in that course, unless exceptional circumstances apply.[51]

Key statistics

Table 1 below shows the number of loans provided under each element of the HELP scheme, since it commenced in 2005. There has been substantial growth across all loan types throughout the period since their inception. In particular, VET FEE-HELP saw a dramatic increase in loan numbers after a slow uptake, with less than 3,500 loans provided in 2009 (a year after the scheme’s introduction) growing to over 196,000 loans in 2015, the year before the scheme was abolished.

Table 1: Number of HELP and VET Student loans by type of loan, 2005 to 2019

Year	No. of CSPs for which HECS-HELP loans paid	No. of places for which FEE-HELP loans paid	OS-HELP	VET FEE-HELP	SA-HELP	VET Student Loans
2005	(a)344,509		(b)n.a.
2006	(a)356,960		1,916
2007	(a)371,654		2,454
2008	(a)385,598		2,626	(b)n. a.
2009	368,679	55,369	2,651	3,498
2010	395,177	64,766	4,086	20,108
2011	414,709	70,849	5,035	28,570
2012	450,314	75,388	5,675	37,700	307,339
2013	484,681	76,106	6,373	65,838	414,197
2014	507,629	76,613	10,986	131,344	444,344
2015	520,606	77,850	12,818	196,108	463,872
2016	601,054	77,778	14,861	(b)n.a.	483,803
2017(c)	824,265	138,550	15,654		508,148	42,220
2018	826,572	136,869	16,392		514,920	57,874
2019	827,877	139,439	16,661		534,132	53,892

Notes:
^(a) Includes FEE-HELP loans. HECS-HELP and FEE-HELP numbers were not separately reported until 2009.
^(b) Although the OS-HELP scheme operated in 2005, and VET FEE-HELP operated in 2008 and 2016, information about the number of loans under these schemes for these years is not available.
^(c) From 2017, the number reported for HELP loans is the number of students who received these loans, not the number of places.

Source: 2005–2016: Relevant education department (names vary) annual reports; 2017–2019: Department of Education, Skills and Training (DESE), ‘Student data’, Section 5 Liability status categories and DESE, VSL Annual statistical reports.

Table 2 shows the total number and amount of HELP debts outstanding in each financial year since HELP was introduced. Both the number of individuals with HELP debts and the debt balance peaked in 2018–19. The slight decrease in 2019–20 appears to be due to the separation of VET Student Loan debt from HELP debt from 1 July 2019, meaning these debts are no longer included in the totals, but are still included in the data for prior years.

While the number of outstanding debts has more than doubled over the period, the total amount of debt outstanding has increased five-fold, with the average outstanding debt increasing from $10,400 to $23,300.

Table 2: Number of individuals with HELP debt and the total HELP debt balance, 2005–06 to 2019–20^(a)

Year	Number of individuals	Total balance ($m)
2005–06	1,188,337	12,399
2006–07	1,248,637	14,011
2007–08	1,314,370	15,807
2008–09	1,371,914	17,821
2009–10	1,461,772	19,905
2010–11	1,567,100	22,573
2011–12	1,680,700	25,531
2012–13	1,823,288	28,986
2013–14	1,997,973	33,816
2014–15	2,223,041	40,182
2015–16	2,468,939	47,887
2016–17	2,659,057	53,988
2017–18	2,872,603	61,924
2018–19	2,972,032	66,647
2019–20	2,851,725	66,387

^(a) Includes HECS-HELP, FEE-HELP, OS-HELP, SA-HELP and VET FEE-HELP debts, but not debts from other student income-contingent loans such as VET Student Loans, Trade Support Loans and Student Start-up Loans.

Source: Australian Taxation Office (ATO), Higher Education Loan Program, Table 5.

As HELP debt is extinguished on death, and some debtors disappear from the Australian tax system, not all outstanding debt is repaid. Appendix C provides details on the number and amount of HELP debts that have been written off. Since 1989, some 18,000 debts have been written off due to death, with total debt written off being nearly $160 million. It is estimated that some 14.7 per cent of HELP loans issued in 2020–21 will not be repaid.[52]

Appendix C also shows the average time taken to make the first compulsory repayment of HELP debt, and the average time to repay the debt in full. Since 2005–06, the average time taken to repay HELP debt has increased from 7.3 years to 9.3 years, reflecting the increasing size of debts.

Chronology of changes to the Higher Education Loan Program

Milestones(a)	Details	Source documents
January 1989	Higher Education Contributions Scheme (HECS) introduced. Key features included: contribution level of $1,800 per annum (pa) indexed by the Higher Education Operations Grant (HEOG) index which was based on the changes in costs incurred by institutions postgraduate research scholarship holders exempt 15.0% discount for up-front payment of contributions repayment threshold of $22,000 at a rate of 1.0% of income, rising to 3.0% for incomes above $35,000 debts and repayment thresholds indexed by the Consumer Price Index (CPI) and debt written off at death.	Higher Education Funding Act 1988
July 1990	Repayment rates increased from 1.0%, 2.0% and 3.0% to 2.0%, 3.0% and 4.0%. Measures introduced to facilitate the reduction and remission of HECS debts in certain circumstances.	Higher Education Funding Amendment Act (No. 2) 1990
January 1992	HECS contribution rate increased from $1,800 pa to $2,250 pa which was $144 higher than the specified indexation increase.	Higher Education Funding Amendment Act (No. 2) 1991
January 1993	Discount for up-front payments increased from 15.0% to 25.0%. New Zealand citizens resident continuously in Australia for less than two years, or studying outside Australia, and permanent residents whose term address was overseas, required to pay HECS up-front. Such students still entitled to the 25.0% reduction for up-front payments.	Higher Education Funding Amendment Act (No. 2) 1992
January 1994	Repayment rates increased from 2.0%, 3.0% and 4.0% to 3.0%, 4.0% and 5.0%. Repayment threshold rebased to $26,402 to reflect increases in Average Weekly Earnings (AWE), which had risen faster than the CPI. Pay-as-you-earn (now pay-as-you-go (PAYG)) tax arrangements introduced for loan repayments, rather than a single large repayment bill at the end of the tax year. HECS exemptions for postgraduate research scholarship holders integrated into Australian Postgraduate Awards. Open Learning Deferred Payment Scheme (OLDPS) introduced, extending HECS arrangements to Open Learning students.	Higher Education Funding Legislation Amendment Act 1993
January 1996	Voluntary repayment rate of 2.0% at income level of $20,000 introduced, which attracted a discount of 10.0% on the total HECS debt. Discount of 15.0% on voluntary lump sum repayments of $500 or more introduced. Non-citizens (including New Zealanders) who became permanent residents and commenced their courses after 1 January 1996 were required to pay their HECS up-front, and the 25.0% discount was removed for these cases.	Higher Education Funding Amendment Act (No. 2) 1995
July 1996	Repayment rates of 3.5%, 4.5%, 5.5% and 6.0% introduced in addition to the existing 3.0%, 4.0% and 5.0% rates.	Higher Education Funding Amendment Act (No. 2) 1995
January 1997	Three differential contribution rates were introduced for different course funding clusters (fields of study bands), based on the cost of tuition and expected earning capacity. Students who commenced prior to 1997 remained under the previous arrangements. Compulsory repayment income thresholds lowered from $28,494 for the 1996–97 tax year to $20,700 for 1997–98. Voluntary 2.0% repayment option removed. Repayment exemption introduced for those with incomes low enough to qualify for a full or partial Medicare Levy exemption. Merit-based equity scholarships introduced, providing 1,000 undergraduate students with an exemption from paying HECS.	Higher Education Legislation Amendment Act 1996
January 1998	25.0% discount for partial up-front payments of $500 or more introduced. Administrative processes related to the remission of HECS debts streamlined.	Higher Education Funding Amendment Act (No. 1) 1997
July 1999	HECS repayment income amended to include total reportable fringe benefits.	A New Tax System (Fringe Benefits Reporting) Act 1999
January 2000	Merit-based equity scholarships abolished with no new awards, although existing recipients continued to receive HECS exemption.	Budget paper No. 2: Budget Measures: 1999–2000
January 2002	Postgraduate Education Loans Scheme (PELS) introduced, providing HECS-style loans for postgraduate coursework study. Provision made for the Minister to determine a maximum permitted HECS debt level.	Innovation and Education Legislation Amendment Act (No. 2) 2001
July 2001	Legislation amended to ensure that a person’s HECS debt was not discharged on bankruptcy.	Higher Education Funding Amendment Act 2001
April 2002	Bridging for Overseas-Trained Professionals Loan Scheme (BORPLS) introduced, providing HECS-style loans for permanent resident professionals who were required to undertake bridging courses to have their qualifications recognised.	Higher Education Legislation Amendment Act (No. 1) 2002
October 2002	Eligibility for PELS extended to students attending a number of private institutions, including Bond University.	Higher Education Funding Amendment Act 2002
January 2005	Additional loans provided under an expanded HELP scheme: HECS became HECS-HELP FEE-HELP for full fee-paying students introduced (replacing PELS, OLDPS and BORPLS), with a total loan limit of $50,000 and OS-HELP for students studying overseas for one or two semesters introduced. Loan fee of 20.0% applied to FEE-HELP loans for undergraduate study, and to OS-HELP loans. Concept of Commonwealth Supported Places (CSPs) introduced. Student Learning Entitlement (SLE) introduced, limiting access to CSPs to seven years of full-time or equivalent study. Institutions able to determine their own student contribution levels within ranges set by the Government. For each of the existing course bands the range was set from $0 to 30.0% higher than the existing contribution level. A new course band of National Priorities for teaching and nursing courses was introduced. The contribution range for this band was set from $0 to the existing field of study Band 1 level. Repayment income threshold raised from $25,347 for the 2003–04 tax year to $35,000 for 2004–05. Lowest two repayment rates removed—the lowest repayment rate became 4.0%. Maximum repayment rate of 8.0% introduced for those with incomes of $65,000 or more. Definition of repayment income extended to include exempt foreign income. Discount for up-front payment of contributions reduced from25.0% to 20.0%. Discount for voluntary repayments reduced from 15.0% to 10.0%.	Higher Education Support Act 2003 (HESA) Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003
January 2005	HESA amended to ensure Open Learning Australia (OLA) was subject to the necessary quality and accountability provisions so that the FEE-HELP scheme could be appropriately administered for OLA students.	Higher Education Legislation Amendment Act (No. 2) 2004
May 2005	SLE and FEE-HELP balances automatically re-credited when a private provider unable to deliver higher education units.	Higher Education Legislation Amendment (2005 Measures No. 1) Act 2005
January 2007	FEE-HELP total loan limit increased from $50,000 to $80,000 ($100,000 for courses in medicine, dentistry and veterinary science).	Higher Education Legislation Amendment (2006 Budget and Other Measures) Act 2006
May 2007	Eligibility for OS-HELP clarified, including that the student could apply while overseas, but could not apply if they had returned to Australia.	Higher Education Legislation Amendment (2007 Measures No. 1) Act 2007
January 2008	VET-FEE HELP introduced for students studying higher level vocational education and training courses. Arrangements mirrored those for FEE-HELP, including a loan fee of 20.0%.	Higher Education Support Amendment (Extending FEE-HELP for VET Diploma, Advanced Diploma, Graduate Diploma and Graduate Certificate Courses) Act 2007
January 2008	Business and administration courses were moved from Band 2 to Band 3, increasing maximum student contribution levels for HECS-HELP from $7,118 in 2007 to $8,499 in 2008.	Higher Education Legislation Amendment (2007 Budget Measures) Act 2007
January 2009	HECS student contributions reduced for maths and science students. HECS-HELP benefit introduced. The benefit halved the HECS repayments for five years for maths, science and early childhood education graduates who worked as teachers or in other occupations relevant to their qualifications. Early childhood education graduates received additional benefit if they worked in designated locations.	Higher Education Support Amendment (2008 Budget Measures) Act 2008
July 2009	Some provisions regarding VET FEE-HELP were moved to the VET FEE-HELP Guidelines to increase flexibility; in particular, extending VET FEE-HELP to cover government-funded Diploma and Advanced Diploma courses.	Higher Education Support Amendment (VET FEE-HELP and Tertiary Admission Centres) Act 2009
July 2009	HELP repayment income definition revised to exclude net investment losses as a deduction.	Tax Laws Amendment (2009 Measures No. 1) Act 2009
July 2009	HECS-HELP benefit extended to education and nursing graduates who worked in relevant occupations.	HECS-HELP Benefit Guidelines No. 1, 3 March 2010.
January 2010	Changes to maximum student contribution levels and course funding clusters. Nursing and education removed from the National Priorities Band, meaning maximum student contributions under HECS-HELP increased from $4,162 in 2009 to $5,310 in 2010. Loan fee for OS-HELP abolished.	Higher Education Support Amendment (2009 Budget Measures) Act 2009
January 2011	Indexation of HECS-HELP contribution levels, FEE-HELP limits and OS-HELP maximum loan amounts changed from the HEOG index to a combination of the CPI and the movement in the Professional, Scientific and Technical Services Labour Price Index.	Higher Education Support Amendment (Indexation) Act 2010
January 2011	FEE-HELP loan fee for undergraduate study increased from 20.0% to 25.0%, but VET FEE-HELP loan fee remained at 20.0%.	Higher Education Support Amendment (FEE-HELP Loan Fee) Act 2010
January 2012	SA-HELP introduced to assist students to pay student services and amenities fees.	Higher Education Legislation Amendment (Student Services and Amenities) Act 2011
January 2012	Discount for up-front payment of contributions reduced from 20.0% to 10.0%. Discount for voluntary repayments reduced from 10.0% to 5.0%.	Higher Education Support Amendment Act (No. 2) 2011
January 2012	SLE limit removed, meaning students could continue to access CSPs for more than seven years full-time study or equivalent.	Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011
May 2012	Changes to the specified locations for HECS-HELP benefit for early childhood education graduates working as preschool or childcare teachers.	HECS-HELP Benefit Guidelines No. 1: Amendment No. 1
January 2013	The National Priority Band was discontinued and HECS-HELP student contributions for maths and science courses increased from $4,520 in 2012 to $8,363 in 2013.	Higher Education Support Amendment (Student Contribution Amounts and Other Measures) Act 2012
June 2013	Higher OS-HELP loans made available to students studying in Asia.	Higher Education Support Amendment (Asian Century) Act 2013
December 2015	Discounts for up-front payment of contributions and voluntary repayment of debt removed.	Labor 2013–14 Budget Savings (Measures No. 2) Act 2015
January 2016	New Zealand citizens who had come to Australia as minors and resided in Australia for most of the previous ten years were given access to HECS-HELP.	Higher Education Legislation Amendment (Miscellaneous Measures) Act 2015
January 2016	Non-residents for tax purposes with a HELP debt required to repay their debt at same income levels and rates as residents.	Education Legislation Amendment (Overseas Debt Recovery) Act 2015 Student Loans (Overseas Debtors Repayment Levy) Act 2015
January 2016	Additional requirements imposed on providers in relation to VET FEE-HELP loans.	Higher Education Support Amendment (VET FEE-HELP Reform) Act 2015
January 2017	VET Student Loans (VSLs) replaced VET FEE-HELP.	VET Student Loans Act 2016 VET Student Loans (Consequential Amendments and Transitional Provisions) Act 2016
July 2017	HECS-HELP benefit abolished.	Budget Savings (Omnibus) Act 2016
January 2018	Indexation of HECS-HELP contribution levels, FEE-HELP limits and OS-HELP and SA-HELP maximum loan amounts changed to CPI only.	Budget Savings (Omnibus) Act 2016
January 2018	Additional requirements imposed on non-university FEE-HELP providers consistent with those for VSL providers. Students no longer eligible for FEE-HELP if they have not successfully completed 50% or more of the units they have enrolled in, unless special circumstances apply.	Education Legislation Amendment (Provider Integrity and Other Measures) Act 2017
July 2018	Repayment threshold reduced from $55,874 for the 2017–18 tax year to $51,596 for 2018–19, and a new repayment rate of 2.0% introduced.	Budget Savings (Omnibus) Act 2016
January 2019	New discretionary powers for the Secretary to remit VET FEE-HELP debts in cases of inappropriate conduct by VET providers introduced.	Higher Education Support Amendment (VET FEE HELP Student Protection) Act 2018
July 2019	Repayment threshold further reduced to $45,880, with range of new repayment rates introduced from 1.0% to 10%. Repayment threshold indexed to the CPI. FEE-HELP loan fee removed for Table B providers.	Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018
July 2019	VSL debts separated from HELP debt.	Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018
January 2020	Renewable HELP loan limit introduced of $150,000 for those studying medicine, dentistry or veterinary science, and $104,440 otherwise. These limits indexed to the CPI.	Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018
January 2020	New charges introduced for higher education providers whose students access HELP.	Higher Education Support Amendment (Cost Recovery) Act 2019 Higher Education Support (Charges) Act 2019
January 2020	Aviation courses added to the group of courses with a higher HELP loan limit. Provisions introduced to encourage teachers (including pre-school teachers) to work in schools in very remote areas through reductions in HELP debt.	Education Legislation Amendment (2019 Measures No. 1) Act 2019
April 2020	FEE-HELP and VSL loan fees suspended for courses with a census date between 1 April 2020 and 30 September 2020 as part of the response to COVID 19.	Education Legislation Amendment (2020 Measures No. 1) Act 2020 VET Student Loans Amendment Rules (No. 1) 2020
January 2021	Student contributions for CSPs significantly altered. Subject areas redistributed across four bands rather than three, with maximum contribution rates ranging from $3,950 pa to $14,500 pa. Continuing students to pay the lesser of the new rate and the indexed former rate for their course. Additional requirements imposed on providers in relation to CSPs, consistent with those already imposed on non-university FEE-HELP providers. Upfront payment of $500 or more of student contributions for CSPs eligible for HECS-HELP discount of 10%.	Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act 2020
July 2021	FEE-HELP loan fee reduced from 25% to 20%	Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act 2020
January 2022	Students no longer eligible for HECS-HELP if they have not successfully completed 50% or more of the units they have enrolled in, unless special circumstances apply. SLE of seven years full-time or equivalent study reintroduced.	Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act 2020
January 2022	Deadline for provider reporting of VET FEE-HELP liabilities.	VET Student Payment Arrangements (Miscellaneous Amendments) Act 2021

^(a) Dates reflect implementation date.

Appendices

Appendix A: HECS-HELP contribution rates, 1989 to 2021

HECS contributions for students who commenced before 1 January 1997

Year	$ pa
1989	1,800
1990	1,882
1991	1,993
1992	2,250
1993	2,328
1994	2,355
1995	2,409
1996	2,442
1997	2,478
1998	2,520
1999	2,560
2000	2,600
2001	2,644
2002	2,702
2003	2,764
2004	2,830

Source: Deloitte Access Economics, The impact of changes to student contribution levels and repayment thresholds on the demand for higher education, report prepared for the Department of Education, Employment and Workplace Relations (DEEWR), DEEWR, August 2011, p. 10.

Maximum HECS-HELP contributions for students who commenced from 1 January 1997

Year	National priorities(a)	Band 1 ($ pa)(b)	Band 2 ($ pa)(c)	Band 3 ($ pa)(d)
1997		3,300	4,700	5,500
1998		3,356	4,779	5,593
1999		3,409	4,855	5,682
2000		3,463	4,932	5,772
2001		3,521	5,015	5,870
2002		3,598	5,125	5,999
2003		3,680	5,242	6,136
2004		3,768	5,367	6,283
2005	3,847	4,808	6,849	8,018
2006	3,920	4,899	6,979	8,170
2007	3,998	4,996	7,118	8,333
2008	4,077	5,095	7,260	8,499
2009	4,162	5,201	7,412	8,677
2010	4,249	5,310	7,567	8,859
2011	4,355	5,442	7,756	9,080
2012	4,520	5,648	8,050	9,425
2013		5,868	8,363	9,792
2014		6,044	8,613	10,085
2015		6,152	8,768	10,266
2016		6,256	8,917	10,440
2017		6,349	9,050	10,596
2018		6,444	9,185	10,754
2019		6,566	9,359	10,958
2020		6,684	9,527	11,155
	Band 1 ($ pa)(e)	Band 2 ($ pa)(f)	Band 3 ($ pa)(g)	Band 4 ($ pa)(h)
2021(i)	3,950	7,950	11,300	14,500

Notes:
^(a) National priorities: 2005 to 2009— education and nursing; 2009 to 2012 - mathematics, statistics and science.
^(b) Band 1: arts and humanities; justice, legal studies; social science and behavioural science; visual and performing arts; and until 2005 and from 2010: education and nursing.
^(c) Band 2: other health sciences; agriculture and renewable resources; built environment and architecture; engineering and processing; and until 2008: business and economics courses; and until 2009 and from 2013: mathematics, statistics and science.
^(d) Band 3: law; medicine and medical science; dentistry and dental services; veterinary science; and from 2008: business and economics.
^(e) Band 1: agriculture, English, mathematics, education, clinical psychology, Indigenous and foreign languages, nursing, statistics.
^(f) Band 2: other health, built environment, computing, engineering, surveying, science, environmental studies, pathology, visual and performing arts, professional pathway psychology, professional pathway social work.
^(g) Band 3: dentistry, medicine, veterinary science
^(h) Band 4: law, accounting, administration, economics, commerce, communications, society and culture.
⁽ⁱ⁾ Continuing students (those who commenced before 1 January 2021), studying units in disciplines with increased student contribution amounts, continue paying the same amount as they would have for any units that would otherwise have an increased student contribution. For example, a continuing student in a communications course would only pay $6,804 rather than $14,500.

Sources: Deloitte Access Economics, The impact of changes to student contribution levels and repayment thresholds on the demand for higher education, report prepared for the Department of Education, Employment and Workplace Relations (DEEWR), DEEWR, August 2011, p. 10 (to 2011); relevant Australian Government archived StudyAssist websites (for 2012 to 2020); Australian Government, ‘Student contribution amounts’, StudyAssist website.       

Appendix B: Average Weekly Earnings (AWOTE), HELP repayment rates and thresholds: 1988–89 to 2020–21

1988–89 to 2003–04

Income year	AWOTE ($ pa)(a)	Repayment rate and repayment threshold ($ pa)(b)
		Nil	1%	2%	3%	3.5%	4%	4.5%	5%	5.5%	6%
1988–89(c)	26,057	21,999	24,999	34,999	35,000+
1989–90	27,318	23,582	26,798	37,518	37,519+
1990–91	29,026	25,468		28,941	40,519		40,520+
1991–92	30,319	27,097		30,793	43,112		43,113+
1992–93	30,800	27,747		31,532	44,146		44,147+
1993–94	31,764	26,402			30,004		42,005		42,006+
1994–95	33,236	26,852			30,516		42,722		42,723+
1995–96	34,710	(d)19,999		27,674	31,449		44,029		44,030+
1996–97(e)	35,942	(d)20,593		28,494	30,049	32,381	37,563	43,335	47,718	51,293	51,294
1997–98(e)	37,344	20,700			21,830	23,524	27,288	32,934	34,665	37,262	37,263
1998–99(e)	38,922	21,333			22,498	24,244	28,123	33,942	35,726	38,402	38,403
1999–00(f)	40,037	21,983			23,183	24,982	28,980	34,976	36,814	39,572	39,573
2000–01(f)	42,039	22,345			23,565	25,393	29,456	35,551	37,420	40,223	40,224
2001–02(f)	44,270	23,241			24,510	26,412	30,638	36,977	38,921	41,837	41,838
2002–03(f)	46,667	24,364			25,694	27,688	32,118	38,763	40,801	43,858	43,859
2003–04(f)	48,571	25,347			26,731	28,805	33,414	40,328	42,447	45,628	45,629

2004–05 to 2018–19

Income year	AWOTE ($ pa)(a)		Repayment rate and repayment threshold ($ pa)(b)
		Nil	2%	4%	4.5%	5%	5.5%	6%	6.5%	7%	7.5%	8%
2004–05(f)	50,929	35,000		38,987	42,972	45,232	48,621	52,657	55,429	60,971	64,999	65,000
2005–06(g)	52,978	36,184		40,306	44,427	46,762	50,266	54,439	57,304	63,062	67,199	67,200
2006–07(g)	55,143	38,148		42,494	46,838	49,300	52,994	57,394	60,414	66,485	70,846	70,847
2007–08(g)	57,673	39,824		44,360	48,896	51,466	55,322	59,915	63,068	69,405	73,959	73,960
2008–09(g)	60,991	41,598		46,333	51,070	53,754	57,782	62,579	65,873	72,492	77,247	77,248
2009–10(h)	64,399	43,151		48,066	52,980	55,764	59,943	64,919	68,336	75,203	80,136	80,137
2010–11(h)	67,077	44,911		50,028	55,143	58,041	62,390	67,750	71,126	78,273	83,407	83,408
2011–12(h)	69,662	47,195		52,572	57,947	60,993	65,563	71,006	74,743	82,253	87,649	87,650
2012–13(h)	73,239	49,095		54,688	60,279	63,448	68,202	73,864	77,751	85,564	91,177	91,178
2013–14(h)	75,169	51,308		57,173	62,997	66,308	71,277	77,194	81,256	89,421	95,287	95,288
2014–15(h)	76,963	53,345		59,421	65,497	68,939	74,105	80,257	84,481	92,970	99,069	99,070
2015–16(h)	78,429	54,125		60,292	66,456	69,949	75,190	81,432	85,718	94,331	100,519	100,520
2016–17(h)	79,992	54,868		61,119	67,368	70,909	76,222	82,550	86,894	95,626	101,899	101,900
2017–18(h)	82,027	55,873		62,238	68,602	72,207	77,618	84,062	88,486	97,377	103,765	103,766
2018–19(h)	84,248	51,956	57,729	64,306	70,881	74,607	80,197	86,855	91,425	100,613	107,213	107,214

2019–20 to 2020–21

	Income year
	2019–20(h)	2020–21(h)
AWOTE ($ pa)(a)	87,680
Repayment rate	Repayment threshold ($ pa)(b)
Nil	45,880	46,619
1.0%	52,973	53,826
2.0%	56,151	57,055
2.5%	59,521	60,479
3.0%	63,092	64,108
3.5%	66,877	67,954
4.0%	70,890	72,031
4.5%	75,144	76,354
5.0%	79,652	80,935
5.5%	84,432	85,792
6.0%	89,498	90,939
6.5%	94,868	96,396
7.0%	100,560	102,179
7.5%	106,593	108,309
8.0%	112,989	114,707
8.5%	119,769	121,698
9.0%	126,955	128,999
9.5%	134,572	136,739
10.0%	134,573	136,740

Notes:
^(a) Seasonally adjusted average weekly ordinary time earnings for adults working full time (calculated as average weekly ordinary time earnings for the two quarterly survey estimates multiplied by 52 weeks).
^(b) Highest income level at which rate is payable, except for top repayment rate, which commences at income level specified.
^(c) As HECS was only introduced on 1 January 1989, repayment rates for 1988–89 were at half the level of later years (that is, 0.5%, 1.0% and 1.5%).
^(d) Repayment at 2% rate was voluntary.
^(e) Taxable income plus net rental losses.
^(f) As per (e) plus total reportable fringe benefits amounts.
^(g) As per (f) plus exempt foreign employment income.
^(h) As per (g) plus any total investment loss (which includes net rental losses), and reportable super contributions.

Sources: Australian Taxation Office (ATO), ‘Study and training loan repayment thresholds and rates’, ATO website. Earlier years sourced from ATO websites now archived at National Library of Australia, Australian Government web archive; and Australian Bureau of Statistics (ABS), Average weekly earnings, Australia, May 2020,  ABS, Canberra, 13 August 2020, Table 2.

Appendix C: HELP debts written off and average repayment periods, 2005–06 to 2019-20

Year	Debts written off due to death (no.) since 1989	Value of debts written off ($) since 1989	Average value of debts written off since 1989(a)	Average time to make first compulsory repayment (years)	Average time to repay debt in full (years)
2005–06	7,087	37,294,112	5,262	6.8	7.3
2006–07	7,744	42,415,456	5,477	6.9	7.5
2007–08	8,402	47,885,789	5,699	5.0	7.6
2008–09	9,174	54,842,974	5,978	5.0	7.7
2009–10	9,518	58,969,004	6,196	5.1	7.9
2010–11	9,581	58,405,139	6,096	5.1	8.1
2011–12	9,581	58,405,139	6,096	5.1	8.2
2012–13	11,241	79,126,088	7,039	5.1	8.4
2013–14	11,767	83,542,818	7,100	5.2	8.5
2014–15	12,849	95,283,709	7,416	5.2	8.7
2015–16	12,852	95,364,906	7,420	5.2	8.8
2016–17	12,859	95,497,814	7,427	5.2	8.9
2017–18	13,387	102,097,662	7,627	5.3	9.1
2018–19	16,218	138,701,424	8,552	5.4	9.2
2019–20	17,875	159,810,005	8,940	5.5	9.3

Note: ^(a) Some debts may also have been written off where debtors are unable to be traced through the taxation system.

Source: ATO, Higher Education Loan Program, Tables 1, 2 and 3.

List of acronyms

AWE	Average weekly earnings
AWOTE	Average weekly ordinary time earnings
BORPLS	Bridging for Overseas-Trained Professionals Loan Scheme
CPI	Consumer Price Index
CSP	Commonwealth Supported Place
HECS	Higher Education Contribution Scheme
HELP	Higher Education Loan Program
HEOG	Higher Education Operating Grant
HESA	Higher Education Support Act 2003
OLA	Open Learning Australia
OLDPS	Open Learning Deferred Payment Scheme
PAYG	Pay-as-you-go
PELS	Postgraduate Education Loans Scheme
pa SLE	Per annum Student Learning Entitlement
VET	Vocational education and training
VSL	VET Student Loans