Under legislation approved by the Australian Government, Australian citizens and permanent residents are required to contribute to the cost of their higher education. The scheme allows for payment of the contribution up-front, with a 25 per cent reduction, at the time of enrolment. Alternatively, payment may be deferred to the time when a student s income reaches the level of the average working income in Australia.
Most students choose to pay the contribution as a tax on their income when employment is secured.
The level of HECS liability for a course for commencing students depends on the discipline category of the course. The liability level is least for category one. The HECS charge does not apply to overseas students or to any category of full fee-paying students. The awards give an exemption from liability under the HECS scheme. In accordance with Department of Education, Training and Youth Affairs guidelines, Australian doctorate and permanent residents undertaking full-time study for a masters degree by research or a PhD are given priority in the allocation of scheme awards and may be granted an exemption.