HECS hotspots reveal young Australian’s pathways to high-paying careers

26 July 2026

The bulk of the nation’s $67.6 billion HECS¹ loans were held by those living in Melbourne and Sydney, according to their 2023-24 tax returns.  

Almost 2.4 million taxpayers have a HECS debt, with the average balance sitting at $28,500, according to new analysis of Australian Taxation Office data² by KPMG Australia. Around half of Australia’s HECS loans are held by people aged under 30.

The student loan balances were found in suburbs that attracted highly skilled workers, well-paid jobs and strong long-term career prospects, KPMG urban economist Terry Rawnsley said.

“Rather than signalling financial stress, it shows how higher education can act as an investment in future earnings,” Mr Rawnsley said.

"A large HECS balance is often a signal of advanced qualifications, and these qualifications are typically associated with higher-paying occupations in sectors such as law, medicine, and technology.  This is really a story about the geography of opportunity.”

Melbourne had the largest number of taxpayers with a HECS debt (532,262 people) and the highest total balance ($16.4 billion), narrowly ahead of Sydney, where 483,606 taxpayers owe a combined $15.2 billion.

“Residents in suburbs such as Darlington, Chippendale, Collingwood and Carlton North have the biggest HECS debts due to the easy access they provide to major employment hubs, and therefore some of the country’s highest-paying jobs,” Mr Rawnsley said.

Average HECS balances exceeded $30,000 in both Melbourne and Sydney but several cities are well above that benchmark, particularly, Gold Coast ($31,000), Western Sydney ($30,100) and the Canberra ($29,300) were above the $28,500 national average.

"We're seeing some of the strongest growth in HECS balances outside the largest capitals in what is further evidence that highly skilled workers are increasingly choosing to build their careers outside Australia's major cities,” Mr Rawnsley said.

“Darwin recorded an annual growth of 6%, followed by Cairns at 5.3% and Adelaide and Hobart at 5%.

"The Gold Coast stands out with one of the largest average HECS balances outside the major capitals, as the city’s economy becomes more diversified and attracts more highly skilled workers.”

HECS continues to be one of the most accessible and supportive student loan systems globally, Mr Rawnsley said.

“While outstanding balances may reflect the rising costs of higher education, HECS empowers graduates to achieve higher wages in the long run, offering significant financial and career benefits over time," he said.

The number of Australians holding a HECS debt has dropped 3.5% since 2021-22, the data showed showing an increasing proportion of young people choosing pathways into the workforce other than university such as accessing Free Tafe programs.

“Australia's future workforce is taking shape as young people choose new pathways into work and training”, Mr Rawnsley said.