Does HECS come out of your pay?
Yes. If you have a HELP debt and your employer knows about it, they withhold a HECS/HELP amount from every pay, on top of ordinary PAYG tax. You tell your employer about your debt on your TFN declaration (question 8). The withheld amount goes to the ATO as credit against your eventual compulsory repayment.
How is the withholding calculated?
Your employer uses the ATO's PAYG withholding tables, which factor in your declared income and whether you have a HELP debt. The table assumes your repayment income equals your salary, so it's an estimate. Your actual compulsory repayment is calculated at assessment using your full repayment income.
What if I have two jobs?
If you have multiple employers, each withholds based on your pay from that job alone, so the total can be under-withheld or over-withheld. The ATO settles it at assessment — you may owe more or get a refund. You can also apply for a varied withholding rate if you know your circumstances differ.
How do I stop or change HECS withholding?
If you've paid off your debt or your circumstances change, give your employer a new TFN declaration. You can also contact the ATO to vary your withholding rate. You can't simply ask your employer to stop withholding — the ATO tables dictate it while you hold a HELP debt.