Estimate the total cost of a university degree in Australia including student contribution amounts, HECS-HELP debt, and living expenses.
| Cost item | Per year | Total |
|---|
| Band | Per unit (annual max) | Disciplines |
|---|---|---|
| Band 1 (lowest) | ~$4,120/yr | Arts, Humanities, Education, Nursing, Social Work |
| Band 2 | ~$5,866/yr | Business, Computing, Engineering, Science, Health |
| Band 3 (highest) | ~$15,571/yr | Law, Dentistry, Medicine, Vet Science, Accounting |
Indexed annually. These are Commonwealth-supported place (CSP) amounts. Full-fee courses cost significantly more.
Australian domestic students at public universities access Commonwealth Supported Places (CSPs) with subsidised fees — you pay only the Student Contribution Amount (SCA), which can be deferred through the HECS-HELP scheme. You pay nothing upfront — the debt sits on your HECS-HELP account and is repaid through the tax system once your income exceeds $67,000 (2025-26 threshold).
| Study Area | Band | 2025-26 Annual Maximum SCA |
|---|---|---|
| Humanities, Social Work, Arts, Education, Clinical Psychology, Nursing | 1 | $4,124 |
| Mathematics, Statistics, Computing, Allied Health, Science, Engineering, Surveying | 2 | $7,549 |
| Law, Accounting, Administration, Economics, Commerce, Medicine, Dentistry, Vet Science | 3 | $15,571 |
| Course | Duration | Annual Tuition | Total HECS Debt | Annual Living Cost (Melb) | Total Study Cost |
|---|---|---|---|---|---|
| Bachelor of Arts | 3 years | $4,124 | ~$12,372 | $24,000 | ~$84,372 |
| Bachelor of Commerce | 3 years | $15,571 | ~$46,713 | $24,000 | ~$118,713 |
| Medicine (MBBS) | 6 years | $15,571 | ~$93,426 | $24,000 | ~$237,426 |
How does HECS-HELP work in Australia?
HECS-HELP allows eligible domestic students at Commonwealth-supported places to defer their tuition fees as a government loan. You pay nothing upfront. The debt is indexed annually (3.2% in 2025) and repaid through the tax system once your income exceeds $67,000 (2025-26). Repayment is 15 cents per dollar above the threshold under the new 2025-26 marginal system.
How much HECS debt does a typical Australian university degree create?
It depends entirely on the discipline band. A 3-year arts or education degree creates approximately $12,372 in HECS debt. A 3-year commerce or law degree creates approximately $46,713. A 6-year medicine degree creates approximately $93,426. These are the maximum Student Contribution Amounts — some universities charge less.
When do you start repaying HECS in Australia?
Compulsory HECS repayments begin when your income exceeds $67,000 (2025-26). Repayments are 15 cents per dollar above the threshold — on $80,000 income, you repay ($80,000 − $67,000) × 15% = $1,950/year. This is collected through the PAYG withholding system if you declare a HECS debt on your TFN declaration.
Was there a HECS debt reduction in 2025?
Yes. All eligible HELP and VET study loan balances as at 1 June 2025 were automatically reduced by 20% under the Universities Accord (Cutting Student Debt) Act 2025. A $50,000 balance became $40,000. No application was required — the ATO applied the reduction and notified affected borrowers through myGov.