Keep on top of student debt

If you're heading to uni, it pays to think about how you'll manage the rising cost

- NICOLA FIELD

Can I claim HECS on tax?

No. Some costs of education may be tax deductible as long there is a strong link between the course and your current (not future) job. However, the Australian Taxation Office makes it clear that tuition fees paid as part of HECS can't be claimed on tax.

Students who attend university, or another approved provider, are expected to contribute to the cost of their studies through the Higher Education Contribution Scheme (HECS). How much you pay depends on your area of study, with subjects divided across four bands.

As a guide, a full-time nursing student in 2023 can pay a maximum HECS of $4124. At the top end of the scale, law students pay a maximum of $15,142. This is not the total cost of the degree, rather an approximate annual fee based on a full-time study load.

HECS can be paid upfront, or you can choose to make a partial payment and defer the remainder or the full amount by taking out a Higher Education Loan Program (HELP) debt.

HELP is repaid through the tax system. The more you earn, the more you repay each year. In 2022-23, you need to earn over $48,361 before any repayments are required.

HELP debt never goes away - not even if you become bankrupt. And as more of us seek tertiary qualifications, Australia has become awash with HELP debt. More than 3 million people have a HELP debt, with a total of $74.4 billion outstanding.