If you’re working in a government job — and also repaying a HECS-HELP debt from your university studies — you might be wondering:
“Will this affect my ability to get a car loan?”
The short answer: not usually.
Lenders don’t view HECS as a “bad debt,” especially for public sector employees. However, it is still factored into your borrowing capacity, so it can influence how much you can borrow — but rarely blocks your approval.
If you’re a government worker, this guide to car finance for public sector employees explains everything.
Here’s how HECS works in car finance applications and how to set yourself up for success.
✅ Why Government Employees Have an Advantage
Working in a public sector role — like a nurse, teacher, admin officer, or police officer — gives lenders confidence that:
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✅ You have reliable PAYG income
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✅ Your HECS repayments are deducted automatically through tax
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✅ You’re unlikely to miss payments
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✅ You have strong job security
📌 Because of this, your HECS debt doesn’t carry the same risk profile as credit cards or personal loans.
📊 How HECS Affects Your Borrowing Power
| Factor | Impact on Car Finance |
|---|---|
| Total HECS debt | Not critical — it’s not a lump sum liability |
| Weekly repayment amount | Treated like a regular expense (e.g. $50–$150/week) |
| Income threshold | Only affects you if you earn above ~$51,000/year |
| Repayment rate | Scales with income — lenders factor this in |
📌 The higher your income, the higher your HECS repayments — which reduces your available income for car loan repayments slightly.
💡 Tips to Get Approved While Paying HECS
Even with a HECS debt, you can strengthen your car loan application by:
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✅ Keeping other debts (credit cards, personal loans) low
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✅ Providing 2 recent payslips and 90-day bank statements
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✅ Applying for a reasonable loan amount based on your income
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✅ Maintaining a credit score of 650+
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✅ Using a broker who knows how to structure applications for public sector workers
HECS only becomes an issue when combined with other high expenses or if you're applying for a loan amount well beyond your means.
🤔 Should You Pay Off HECS First?
Not necessarily. HECS is:
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Interest-free (indexed annually to inflation)
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Paid through the tax system
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Low risk compared to other forms of debt
📌 In most cases, it’s better to focus on managing your car loan — HECS won’t hurt your credit score or stop your approval.
🔗 Car Loans for Government Employees with HECS
We work with brokers who understand how to present your income and HECS repayment clearly to lenders, ensuring you get the best deal possible.
🚀 Final Thoughts
HECS-HELP debt doesn’t need to stand in the way of your car finance. As a government employee, your stable job and reliable income give you everything you need to get approved — even while making regular HECS repayments.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
