HECS / HELP Repayment Calculator 2025-26

How HECS/HELP Repayment Works (2025-26)

From 1 July 2025, compulsory repayments use a marginal rate system. You only repay on the part of your income above the $67,000 threshold. Rates are: 15% on income between $67,001 and $125,000; $8,700 plus 17% on income between $125,001 and $179,285; and 10% of your total repayment income once you earn $179,286 or more.

What Counts as Repayment Income?

Repayment income includes taxable income, reportable fringe benefits, total net investment loss (e.g. rental losses), reportable super contributions, and exempt foreign employment income. For most people with a single job and no extra components, it is the same as taxable income. The ATO works out your compulsory repayment when you lodge your tax return.

2025-26 Repayment Thresholds and Rates

How HECS/HELP Indexation Works

On 1 June each year the ATO increases your HECS-HELP balance by the lower of the CPI increase or the Wage Price Index (WPI) increase over the previous 12 months. Recent indexation rates have been significant — 7.1% in 2023 and 4.7% in 2024 — meaning a $30,000 debt grew by over $2,100 in a single year at the 2023 rate.

Unlike a standard loan, there is no interest charged — but indexation has a similar compounding effect. Any repayments (compulsory or voluntary) made before 1 June reduce the balance that is indexed, so timing can matter.

Voluntary HECS/HELP Repayments Explained

You can make voluntary repayments to the ATO at any time via BPAY or myGov. There is no bonus or discount for voluntary repayments (a 5% bonus was removed in 2017). However, reducing your balance before 1 June each year means less indexation is applied, which is the primary financial benefit.

Whether voluntary repayments make sense depends on the indexation rate versus what you could earn investing the money elsewhere. When CPI is high (above 4–5%), paying down HECS debt early can be financially equivalent to a guaranteed 4–5% return. Use the Debt Payoff tab above to see exactly how many years you'd save and how much indexation you'd avoid.

How Long to Pay Off HECS Debt?

The payoff timeline depends on your income, current debt balance, indexation rate, and whether you make extra payments. At a $30,000 balance and $85,000 income with 4% indexation, compulsory repayments alone typically clear the debt in around 9–11 years. Adding $5,000/yr in voluntary repayments can reduce this to 5–6 years and save $3,000–$5,000 in indexation.

The Debt Payoff Calculator tab above generates a year-by-year breakdown so you can see exactly when each dollar is repaid and how much indexation accrues each year.

Frequently Asked Questions

What is repayment income for HECS/HELP?

Repayment income is your taxable income plus reportable fringe benefits, total net investment loss, reportable super contributions, and exempt foreign employment income (minus any assessable FHSS amounts). For most employees it is similar to taxable income.

What is the HECS/HELP repayment threshold for 2025-26?

The minimum repayment threshold for 2025-26 is $67,000. Repayments are calculated only on income above this amount using the marginal rates shown in the table above.

When do I have to repay my HECS/HELP debt?

Compulsory repayments are calculated when you lodge your tax return. If your repayment income is above the threshold, the ATO will include the amount on your notice of assessment. You can also ask your employer to withhold extra amounts from your pay by declaring your loan on a withholding declaration.

Should I make voluntary HECS/HELP repayments?

It depends on the indexation rate and your alternative uses for the money. When indexation is above 4–5%, voluntary repayments offer a guaranteed return equivalent to the indexation rate avoided. There is no discount or bonus — the benefit is purely in reducing future indexation. Use the Debt Payoff tab to model your specific situation.

How does HECS indexation affect my debt?

On 1 June each year, your remaining HECS balance is increased by the lower of CPI or WPI. Recent rates: 7.1% (2023), 4.7% (2024). At 4.7%, a $30,000 debt grows by $1,410 overnight — before any repayments that financial year are credited. Voluntary repayments made before 1 June directly reduce the balance subject to indexation.

Can I make voluntary HECS/HELP repayments?

Yes. You can pay the ATO directly via BPAY using the reference on your ATO account (accessible through myGov). Payments are credited to your HELP balance within a few business days. There is no minimum and no prepayment penalty. Compulsory repayments are still assessed based on your income each year regardless of voluntary payments made.