HECS-HELP Repayment Calculator

Find out how much you'll repay this year and how long until your student debt is paid off.

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Annual HECS Repayment
Monthly Repayment
Effective Rate
Years to Repay
Debt-Free Year

How HECS-HELP Repayments Work

HECS-HELP is a government loan scheme that helps eligible students pay their university fees. Unlike a regular loan, you don't make repayments until your income exceeds a threshold — and the repayment amount is based on your income, not the size of your debt.

Repayments are made through the tax system. When you lodge your tax return, the ATO calculates your required repayment and adjusts your refund (or bill) accordingly. Most employers also withhold extra tax if you declare a HECS-HELP debt on your TFN declaration.

2026–27 Repayment Thresholds

Since 1 July 2025, HELP repayments are calculated on a marginal basis — you repay only on the income above the threshold, not on your whole income. For 2026–27:

  • Below $69,528: No repayment required
  • $69,528 – $129,717: 15c for each $1 above $69,528
  • $129,718 – $186,050: $9,028 plus 17c for each $1 above $129,717
  • $186,051 and above: 10% of your total repayment income

For example, on a repayment income of $80,000 you repay 15% of ($80,000 − $69,528) = about $1,571 for the year — an effective rate of roughly 2%. The old system, where a single rate applied to your entire income once you crossed a threshold, was abolished on 1 July 2025.

HECS Indexation

On 1 June each year, your HECS-HELP balance is indexed. Since 2023 the indexation rate is the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI), which keeps it closer to wage growth. Indexation was 3.2% on 1 June 2025 and 2.8% on 1 June 2026 — well down from the 7.1% spike in 2023. Making voluntary repayments before 1 June reduces the balance subject to indexation.

Repayment Income

Your repayment income includes your taxable income plus any reportable fringe benefits, total net investment losses, and reportable employer super contributions. It may be higher than your basic salary.

Frequently Asked Questions

When do I start repaying HECS?
Compulsory repayments begin when your repayment income exceeds $69,528 (2026–27). Below this threshold, no repayment is required. Your employer withholds additional tax once you declare a HECS debt on your TFN declaration.
Is my HECS repayment based on my salary or my debt balance?
Your compulsory repayment is based on your repayment income, not your debt balance. Since 1 July 2025 the repayment is marginal — you repay 15c for every dollar above the $69,528 threshold. If you earn $85,000, that's about $2,321 a year, regardless of whether you owe $5,000 or $80,000. You'll simply pay off the debt faster if it's smaller.
Should I make voluntary HECS repayments?
It depends on your circumstances. Since the 5% discount was removed in 2012, the main benefit of voluntary repayments is reducing your balance before 1 June indexation. If CPI is high (as it has been recently), paying down the debt before indexation day can save meaningful money.
What is the minimum HECS repayment in 2026–27?
Repayments are now marginal — there is no flat minimum percentage. Once your repayment income passes $69,528 (2026–27), you repay 15c for every dollar above the threshold. Someone earning $75,000 repays 15% of $5,472 = about $821 for the year.
Does my HECS debt affect my borrowing power?
Yes. Lenders assess your HECS repayment as a regular commitment that reduces your disposable income. This can reduce your borrowing power by roughly 3–5 times the annual repayment amount, depending on the lender's assessment criteria.
Disclaimer: This calculator provides estimates based on 2026–27 HECS-HELP repayment thresholds published by the ATO. The years-to-repay estimate assumes constant income and does not account for indexation. This is not financial advice. Always check the ATO website for current rates and consult a tax professional for personalised advice.