Salary sacrifice your HECS debt and save!

Do you have a HECS/HELP debt?

If you have a HECS/HELP debt and you work for a not-for-profit organisation or in Public Health, you can still benefit from salary packaging. Not only can salary packaging help put more in your pocket today, but it can also help you pay down your HECS debt faster!

How does salary packaging with a HECS debt work?

The same fundamental principles apply – you are paying for items such as living expenses with your pre-tax income, therefore being taxed less and having more in your pocket.

Because your overall income situation changes with consideration of the ‘benefits’ you receive from salary packaging, your HECS repayments will need to increase.

So, not only will you benefit with more take-home pay in your pocket today, but you’ll also be better off in the future thanks to paying off your HECS debt sooner!

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Less tax to pay


More take-home pay


Faster HECS repayment

Show me the money!

This example shows the fortnightly pay of a Public Health employee who is earning $70,000 p.a., is repaying $2,450 p.a. in HECS and is entitled to salary package Living Expenses up to $9,010 p.a.

By salary packaging Living Expenses, over $1,000 in additional HECS is paid and over $2,000 more is in their pocket each year! And by salary packaging Meal Entertainment as well, they’d be saving even more!

*Note that as your taxable income will decrease, your Payroll department will collect less HECS by default. However, as your Adjusted Taxable Income (ATI) will be higher with consideration of the additional benefits received, your total HECS repayment obligations will in fact increase. Therefore, to avoid a liability it is important to speak to a Paywise Salary Packaging Account Manager during the setup process.

What if I want to pay off my HECS debt even faster?

More good news… if you want to increase your HECS debt repayments, you can salary package additional repayments. This means you can make these additional repayments from your pre-tax income and therefore reduce your tax, fast-tracking your debt repayments!


  • Let Paywise know you have a HECS debt or if you receive any income/means tested Centrelink benefits or tax concessions, child support payments, child care rebate or family tax benefits. We will assist in setting up salary packaging with consideration of your HECS debt and provide guidance on steps you need to take.
  • You’ll need to ask your payroll department to adjust your HECS repayment and voluntary tax amounts. Speak to us first and we’ll guide you through this process.
  • Consider financial advice.
  • Don’t have a HECS/HELP debt, but thinking about studying? Accessing Paywise Self Education might be a smart way to save money whilst increasing your skills.
  • The above content relates to employees of not-for-profit and Public Health organisations.

Let’s do this!

To save on tax by salary packaging, call us on 1300 132 532 or speak to your Salary Packaging Account Manager.

This material is general information only and does not consider your objectives, financial situation or needs. Before making a decision you should consult your independent legal, taxation and financial advisor for advice relating to your personal circumstances. Conditions, fees and charges may apply.