Your employer withholds extra PAYG tax to cover your HECS-HELP repayments — but only if you have told them you have a debt. If your employer does not know about your HECS debt, they will not withhold the extra amount, and you will face a larger bill when you lodge your tax return.
How to Tell Your Employer About Your HECS Debt
When you start a new job, you complete a Tax File Number (TFN) Declaration form. This form includes the question:
“Do you have a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?”
Tick Yes if you have any HELP debt (including HECS-HELP, FEE-HELP, VET Student Loan, etc.).
Your employer uses this declaration to determine how much extra to withhold from each pay cheque.
Updating an Existing Employer
If you did not declare your HECS debt when you started a job, or if you took on a new HECS debt while already employed, you can provide a new TFN declaration to your employer at any time. There is no limit on how many times you can update it.
Provide your payroll or HR department with a completed TFN declaration with the HECS box ticked.
What If Your Employer Is Withholding the Wrong Amount?
Too Little Being Withheld
If your employer is not withholding enough for HECS (e.g., you have multiple jobs and your combined income is higher than each employer expects), you can:
- Request a withholding variation from the ATO — you ask the ATO to allow extra withholding from one employer
- Make a voluntary prepayment to the ATO before 31 May to cover the expected shortfall
Too Much Being Withheld
If you paid off your HECS debt (confirmed with the ATO) but your employer is still withholding extra:
- Provide your employer with a new TFN declaration with the HECS box unticked
- The excess withholding will be refunded when you lodge your tax return
Multiple Jobs and HECS
If you have two or more jobs, each employer withholds based on the income they pay you. However, HECS repayments are calculated on your total combined income at tax time. This means:
- If your combined income is significantly above one job’s estimate, you may be under-withheld for HECS
- A tax variation or voluntary repayment before 30 June can address this
Single Touch Payroll (STP) and HECS
Your employer reports your income and HECS-related withholding to the ATO in real time via Single Touch Payroll (STP). This means the ATO sees your year-to-date income throughout the year — not just at tax time. Pre-filled information in myTax reflects STP data.
Related Articles
- HECS-HELP Repayment Thresholds 2025–26
- How to Declare Your HECS on Your Tax Return
- HECS-HELP Explained
- HECS-HELP Australia hub
Frequently Asked Questions
How do I tell my employer I have a HECS debt? Complete a TFN Declaration form and tick the box for HELP/VSL/FS/SSL/TSL debt. Give the completed form to your payroll or HR department.
What happens if I forget to tell my employer about my HECS debt? Your employer will not withhold extra for HECS. At tax time, the ATO will assess your compulsory repayment and you will owe the full amount — potentially a large surprise bill.
Do I need to tell each employer if I have multiple jobs? Yes. Each employer needs a TFN declaration. Each employer will withhold based on the income they pay you. Your total liability is reconciled at tax time based on your combined income.
This article provides general information about HECS-HELP for FY2025–26. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.