Do Compulsory HELP/HECS Repayments Reduce PAYG Withholding?

Compulsory HELP/HECS repayments do not reduce your PAYG withholding. If you have a student loan, your employer simply withholds extra tax so the ATO can collect your loan repayment at tax time. Your taxable income stays the same — it’s not a deduction or a discount. If too little is withheld, you may get a tax bill. If too much is withheld, you’ll receive a refund.