HECS-HELP Repayment Calculator Australia 2025-26
About to start a new job, or just want to know what you actually take home.
See your compulsory HECS-HELP repayment based on ATO thresholds, how much is withheld per pay, and how many years until your debt is paid off.
Compulsory repayments start at $54,435 income (2025-26). Enter your details below for your exact repayment.
Select the question that matches where you are right now.
HECS-HELP debt is a government loan that covers your university fees. Repayment is compulsory once your income exceeds the repayment threshold, collected through the PAYG tax system. The debt is indexed annually to CPI.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
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The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
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For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How HECS/HELP compulsory repayments are calculated in Australia
Repayment mechanism
HECS repayments are calculated as a percentage of your Repayment Income (RI) — which is your taxable income plus any total net investment loss, reportable fringe benefits, and reportable super contributions. Your employer withholds the repayment as part of PAYG if you have declared HECS debt on your TFN declaration. Any difference is reconciled at tax time.
2025-26 repayment rates (selected)
| Repayment Income | Rate | Annual repayment on $80k |
|---|---|---|
| Below $54,435 | 0% | $0 |
| $54,435–$62,849 | 1.0% | N/A |
| $66,620–$74,854 | 2.5% | $2,000 |
| $79,346–$84,107 | 3.5% | ~$2,800 |
| $89,154–$94,502 | 4.5% | ~$4,000 |
| $100,174–$106,185 | 5.5% | ~$5,500 |
| $119,309–$126,466 | 7.0% | ~$8,352 |
Full HECS repayment threshold table 2025-26
The threshold applies to your Repayment Income, which may differ from your taxable income if you have investment losses, fringe benefits, or additional super contributions.
| Annual income | Repayment rate | Annual repayment | Monthly repayment |
|---|---|---|---|
| $60,000 | 1.0% | $600 | $50 |
| $70,000 | 2.0% | $1,400 | $117 |
| $80,000 | 2.5% | $2,000 | $167 |
| $90,000 | 3.75% | $3,375 | $281 |
| $100,000 | 4.0% | $4,000 | $333 |
| $110,000 | 6.2% | $6,820 | $568 |
| $120,000 | 7.0% | $8,400 | $700 |
| $130,000 | 8.0% | $10,400 | $867 |
How HECS/HELP debt reduces your home loan borrowing capacity
Why HECS reduces your borrowing capacity
Lenders treat the compulsory HECS repayment as a fixed monthly commitment, subtracting it from your available income before calculating how much you can borrow. On $100,000 income, the $4,000/year HECS repayment ($333/month) reduces maximum borrowing by approximately $40,000–$55,000 at standard assessment rates.
Paying out HECS before applying for a home loan
If your remaining HECS balance is small (under $15,000–$25,000), paying it out voluntarily before applying for a home loan can increase your borrowing capacity by more than the payoff cost. Example: paying out $20,000 in HECS may increase your borrowing capacity by $45,000–$55,000 — a 2–2.5x return on the outlay.
| Remaining HECS | Monthly repayment cost | Borrowing capacity reduction | Worth paying out? |
|---|---|---|---|
| $5,000 | ~$117/mo (at $70k) | ~$14,000 | Possibly |
| $15,000 | ~$281/mo (at $90k) | ~$34,000 | Usually yes |
| $30,000 | ~$333/mo (at $100k) | ~$41,000 | Consider carefully |
| $60,000+ | ~$568/mo (at $110k) | ~$68,000 | Unlikely to pay all out |
Making voluntary HECS repayments — does it make sense?
Tax implications of voluntary HECS repayment
Voluntary HECS repayments do not reduce your taxable income — you make them from after-tax dollars. There is no longer a bonus for voluntary repayments (the 5% and 10% bonuses for voluntary payments were removed in 2017).
When voluntary repayment makes sense
Paying off HECS voluntarily makes most sense when: (1) you are applying for a home loan and a small remaining balance is significantly reducing your borrowing capacity; (2) your income is expected to rise rapidly, meaning the mandatory repayment rate will climb; (3) you have a lump sum available (bonus, inheritance) that would otherwise sit in a low-rate savings account.
How HECS debt is indexed to inflation
Annual CPI indexation
HECS-HELP debt is indexed annually on 1 June each year to the Consumer Price Index (CPI). In 2024, the indexation rate was 4.7% — the highest in decades due to elevated inflation. A $50,000 HECS debt increased by approximately $2,350 in a single day.
Indexation vs repayment progress
If your income is below the repayment threshold, your HECS debt is growing at the CPI rate each year. Even if you are making compulsory repayments, high CPI can result in your debt balance increasing rather than falling if your repayments are small relative to the indexation. Check your ATO MyGov balance annually.
HECS repayments for Australians living overseas
Overseas repayment obligation
Since 2017, Australians living overseas for 6 or more months per year with HECS-HELP debt must register with the ATO and make repayments based on their worldwide income. The repayment rates are the same as for Australian residents.
Compliance
Failure to register and make overseas repayments can result in penalties. The ATO is increasingly enforcing this obligation through international information sharing. If you are or were overseas and had HECS debt, check your compliance position via the ATO website or a tax agent.
Australian HELP-HECS repayment bands 2025-26
Full repayment bands table
| Repayment income | Rate | Annual repayment |
|---|---|---|
| Below $54,435 | 0% | Nil |
| $54,435 - $62,850 | 1.0% | $544 - $629 |
| $62,851 - $66,620 | 2.0% | $1,257 - $1,332 |
| $66,621 - $70,618 | 2.5% | $1,666 - $1,765 |
| $70,619 - $74,855 | 3.0% | $2,119 - $2,246 |
| $74,856 - $79,346 | 3.5% | $2,620 - $2,777 |
| $79,347 - $84,107 | 4.0% | $3,174 - $3,364 |
| $84,108 - $89,154 | 4.5% | $3,785 - $4,012 |
| $89,155 - $94,503 | 5.0% | $4,458 - $4,725 |
| $94,504 - $100,174 | 5.5% | $5,198 - $5,510 |
| $100,175 - $106,185 | 6.0% | $6,011 - $6,371 |
| $106,186 - $112,556 | 6.5% | $6,902 - $7,316 |
| $112,557 - $119,309 | 7.0% | $7,879 - $8,352 |
| $119,310 - $126,467 | 7.5% | $8,948 - $9,485 |
| $126,468 - $134,056 | 8.0% | $10,117 - $10,724 |
| $134,057 - $142,100 | 8.5% | $11,395 - $12,079 |
| $142,101 - $150,626 | 9.0% | $12,789 - $13,556 |
| $150,627 - $159,664 | 9.5% | $14,310 - $15,168 |
| $159,665+ | 10.0% | $15,967+ |
How long to pay off HECS debt Australia
Payoff time by debt size and income
| Debt size | $70k income | $90k income | $120k income |
|---|---|---|---|
| $20,000 | ~8 years | ~5 years | ~3 years |
| $40,000 | ~16 years | ~10 years | ~6 years |
| $60,000 | ~24 years | ~14 years | ~9 years |
| $80,000 | ~31 years | ~19 years | ~13 years |
| $100,000 | Very long | ~24 years | ~16 years |
Assumes 3.5% average annual indexation. Higher incomes clear debt much faster — the 10% top band on $159,665+ clears most debts in 5-10 years.
Average Australian HECS debt 2024
Average HELP debt balance: $27,600 (2024). Median: $22,000. Medical/law graduates typically $40,000-$80,000. Architecture/Masters programs often $60,000+.
Indexation history
| Year | CPI indexation |
|---|---|
| 2024 | 4.7% |
| 2023 | 7.1% (40-year high) |
| 2022 | 3.9% |
| 2021 | 0.6% |
| 2020 | 1.8% |
HECS-HELP repayment strategies
Pay before June 1 indexation
Indexation applies 1 June each year. Voluntary payments before June 1 avoid that year's indexation on the paid amount. A $10,000 voluntary payment on 30 May avoids 3-5% indexation = $300-500 saved.
Voluntary payment vs investing
If expected investment return (after tax) exceeds indexation rate: invest instead. HECS indexation 3-4%, but markets can return 7-10%. For most people: invest unless debt is causing stress or limiting borrowing.
HECS and mortgage borrowing
Banks treat HECS as monthly commitment in serviceability. On $80k income: HECS reduces borrowing capacity by $40-50k. Paying off HECS can unlock significantly more mortgage borrowing — may be worth it to pay down before buying home.
Don't salary sacrifice just to reduce HECS
Salary sacrifice is added back to repayment income — doesn't reduce HECS. Only do for super tax benefits or FBT savings, not to manipulate HECS payment.
Time large bonuses/awards
Large taxable income in one year pushes you into higher HECS band. If possible, spread across years or time with lower-income years. Each band jump is 0.5 percentage points = meaningful on large debts.
Overseas residents
Still must report worldwide income and pay HECS if above threshold. Failure to report: penalties. Register with ATO via myGov when moving overseas. Payments in foreign currency converted to AUD.
Types of Australian government student loans (HELP, VSL, SFSS)
HECS-HELP
Commonwealth-supported place students. Government subsidises place; student pays 'student contribution'. Most undergraduates. Indexed to CPI annually. Repayment via tax system.
FEE-HELP
Full-fee paying undergraduate/postgraduate. Higher debt accumulation (no government subsidy). Same repayment rules as HECS-HELP. Lifetime FEE-HELP limit $112,131 (2024-25) except medicine/dentistry/veterinary ($161,336).
OS-HELP
For studying overseas as part of Australian course. Up to $6,984 per 6-month period. Counted within lifetime HELP limit. Same repayment terms.
SA-HELP
Pays student amenities fee (SSAF) on behalf of students. Small debt typically $315/year. Same indexation and repayment.
VET Student Loan (VSL)
For Certificate IV and Diploma courses at approved VET providers. Caps vary by course. Same repayment income rules as HELP. Combined with HELP for limit calculations.
SFSS (Student Financial Supplement Scheme — closed)
Closed to new applications 2003. Existing SFSS debt continues. Same repayment treatment as HELP. Some Australians have both SFSS and HECS debts.
2025 Australian HELP debt reforms
20% HELP debt reduction (June 2025)
Labor government committed to reducing all outstanding HELP debt by 20% before 1 June 2025 indexation. $30,000 debt becomes $24,000. Applies automatically — no action needed. Applies to HELP, VSL, SFSS, TSL. Permanent reduction, not delayed repayment.
Indexation reform — lower of CPI or WPI
From 2023 onwards: indexation applies the lower of CPI or Wage Price Index. 2023 indexation would have been 7.1% CPI; reduced to 3.2% WPI under new rule. Retroactive to 1 June 2023. Significant saving for most borrowers.
Raising repayment threshold
Labor proposal: raise repayment threshold from $54,435 to $67,000 from 2025-26. Reduces repayment burden on lower earners. Switches to marginal system — repayment only on income above threshold, not whole income.
Who benefits most from reforms
All existing debt holders (20% reduction). Lower earners (higher threshold). High-inflation year cohorts (WPI cap saves from 7%+ indexation). Combined effect for average graduate: thousands off debt, years off repayment timeline.
HELP debt repayment scenarios
Repayment by income level
| Income | Band | Rate | Annual repay | Fortnightly |
|---|---|---|---|---|
| $55,000 | 1st band | 1.0% | $550 | $21.15 |
| $65,000 | 2.0% | 2.0% | $1,300 | $50.00 |
| $75,000 | 3.5% | 3.5% | $2,625 | $100.96 |
| $90,000 | 5.0% | 5.0% | $4,500 | $173.08 |
| $110,000 | 6.5% | 6.5% | $7,150 | $275.00 |
| $130,000 | 8.0% | 8.0% | $10,400 | $400.00 |
| $160,000+ | 10% | 10.0% | $16,000+ | $615+ |
Cost of indexation vs repayment
$40,000 debt at 3.5% indexation = $1,400 added per year. On $70k income with 3% repayment ($2,100/yr), net reduction only $700. Higher earners far more effective at paying down — top band earners ($160k+) reduce debt $14,600+ per year after indexation.
Pay before June 1 indexation
Voluntary payment before 1 June avoids that year's indexation on the paid amount. $10,000 voluntary payment at 3% indexation saves $300. At 7% (2023 rate would have been): $700 saved. Small but positive ROI.
Early career scenarios
Graduate on $60k with $35k HECS: clears in ~22 years (assuming modest income growth). Same graduate on $90k: clears in ~10 years. Graduate on $120k: clears in ~5 years. Income growth is the fastest repayment lever.
HECS-HELP tax planning and common scenarios
Salary packaging trap
Salary packaged FBT items (novated lease, laptop) add to repayment income. Can push you into higher repayment band. $20k lease + $80k salary: HRI becomes $100k+. HECS repayment increases substantially. Calculate total impact before packaging.
Investment property considerations
Negative gearing losses don't reduce HRI — investment losses added back. So rental loss that cuts your taxable income doesn't cut HECS payment. Important for high-debt landlords with negative gearing strategy.
Parental leave and HECS
Paid parental leave and government payments count as income for HECS if above threshold. Unpaid leave: no income, no HECS. If earning under threshold during parental leave: no payment required that year.
Bonuses and one-off income
Large bonus pushes you into higher repayment band for that year. A $40k bonus on $80k base makes HRI $120k — triggers 7.5% rate on whole year ($9,000 vs $3,200 without bonus). Consider timing large payments.
Self-employed and HECS
Sole traders: HECS applies to business profit (not just drawings). Directors with company: dividends + salary both count. Reportable super contributions also added. Budget for HECS in quarterly tax planning.
Student loan weight vs mortgage borrowing
Banks count HECS as ongoing commitment — reduces borrowing capacity $30-50k per $100 monthly HECS payment. $500/month HECS: ~$150-250k less mortgage. Consider paying down HECS before mortgage application for larger loan.
Australian graduate financial planning with HECS
First job budgeting with HECS
Graduate starting $70k: HECS ~$2,100/year ($81/fortnight). Combined with income tax, Medicare, super — net take-home around $54,000. Budget around net income, not gross.
HECS vs emergency fund priority
Always build emergency fund first (3-6 months expenses). HECS indexation is low (3-5%) but unexpected expenses can cause high-interest credit card debt. Emergency fund prevents financial emergencies.
HECS vs super sacrifice
Salary sacrifice to super saves tax at marginal rate but adds to HRI. Voluntary super contributions (not salary sacrificed): no HRI impact but no immediate tax saving. For high-HECS-debt graduates: personal contribution may be better.
HECS-free investment accounts
Voluntary super personal contribution: tax deduction AND doesn't increase HRI. Investment ETFs in taxable: income does count. Investment bond: growth internal, 10-year tax-free withdrawal.
First home with HECS debt
HECS reduces borrowing capacity. Options: pay down HECS before mortgage application, use First Home Super Saver (FHSS), have higher-earning partner take loan in sole name. Consider each option's trade-offs.
Graduate benchmark repayment rates
Law/medicine graduates: $60k-$80k debt typical, $80-$120k income expected = 5-10+ years repayment. Teaching/nursing: $25k-$40k debt, $65k-$80k income = 10-15 years. Engineering: $40k-$50k debt, $90k-$120k income = 5-8 years.
Australian HELP-HECS key facts and figures
Program scale
Over 3 million Australians have HELP debt. Total outstanding debt: $81 billion (2024). Annual indexation revenue: $2-5 billion depending on CPI. Largest unsecured government loan scheme in Australia.
Average debt by qualification
| Qualification | Avg debt 2024 |
|---|---|
| Bachelor (general) | $25,000 |
| Bachelor + Honours | $30,000 |
| Masters coursework | $45,000 |
| MBA / Law / Medicine | $60,000-$100,000 |
| Architecture / PhD | $50,000+ |
Completion rates
Most Australians pay off their debt within 8-15 years of graduation depending on career. Low-income earners may never pay off (write-off at death). High-income graduates (medicine, law, finance) often clear within 5-8 years.
Why indexation matters
2023 indexation at 7.1% added $1,775 to average $25k debt — more than typical voluntary repayment for many. New CPI/WPI cap reduces this pressure. 2024 indexation dropped to 4.7% and 2025 forecast further below.
International comparison
US student loans: higher interest (5-7%), stricter repayment rules. UK plans similar income-based repayment. Nordic countries: often free higher education. Australian HELP is relatively generous with indexation-only and income threshold rules.
Australian university course costs under Job-Ready Graduates
Student contribution bands 2025
| Band | 2025 annual cap | Courses |
|---|---|---|
| Band 1 | $4,627 | Teaching, nursing, agriculture, English, maths, statistics |
| Band 2 | $9,314 | Allied health, clinical psychology, foreign languages |
| Band 3 | $13,250 | Computing, engineering, environmental studies, built environment |
| Band 4 | $16,992 | Law, accounting, administration, economics, commerce, medical, communications, society/culture |
3-year bachelor degree typical costs
Teaching: ~$14,000. Nursing: ~$14,000. Engineering: ~$40,000. Law: ~$50,000. Commerce: ~$50,000. Medicine (6 years): ~$70,000 Band 2 (was Band 3 pre-2021 reforms).
HELP lifetime limit
Combined HELP limit: $126,839 for 2024-25. Medicine/dentistry/veterinary: $182,119. Once hit limit, must pay upfront or ineligible for further HELP. Reach slowly for most students — usually only an issue for multiple degrees.
Postgraduate costs
Coursework masters: typically $15,000-$35,000/year. Research masters/PhD: usually fee-free (Research Training Program). MBA: often $50,000-$100,000 total.
HECS-HELP employer withholding rules
How employer withholds HELP
Tell employer via TFN Declaration that you have HELP debt. Employer calculates withholding based on your fortnightly/weekly pay at equivalent annual rate. Deducted as part of PAYG withholding each pay.
Multiple jobs HELP trap
Each employer calculates HELP on their own payroll data. You may be under-withheld if total income pushes you into higher repayment band. Results in large tax bill at year-end. Options: request extra withholding from one employer, pay voluntary quarterly.
Tax time reconciliation
At lodgement, actual HELP repayment calculated on full year's HRI. Compared to amount withheld. Refund if over-withheld; bill if under-withheld. Common to have small adjustment either way.
Self-employed HELP payments
No automatic withholding. Include HELP repayment estimate in PAYG instalments. Or pay lump sum via BPAY before 1 June. Budget quarterly for HELP alongside income tax and GST.
❓ Frequently asked Frequently asked questions
When do I have to start repaying HECS?
Repayments become compulsory once your Repayment Income exceeds $54,435 in 2025-26. Your employer withholds the repayment as part of PAYG withholding if you have declared HECS debt on your TFN declaration. Any shortfall or excess is reconciled when you lodge your tax return.
Does HECS affect my credit score?
No — HECS debt does not appear on your credit file and is not treated like a bank loan for credit scoring purposes. However, lenders do ask about HECS and factor the compulsory repayment into their serviceability assessment when you apply for a home loan.
How much does HECS reduce my borrowing capacity?
The compulsory HECS repayment at your income level is treated as a monthly commitment by lenders. At $100,000 income, the $333/month HECS repayment reduces maximum home loan borrowing capacity by approximately $40,000–$55,000.
Is it worth paying out HECS early?
Paying out HECS voluntarily makes sense when: (1) a small remaining balance is significantly reducing your home loan borrowing capacity; (2) you have spare cash in a low-rate account; (3) you expect high CPI indexation to increase the balance faster than you repay. There is no tax deduction for voluntary HECS repayments.
What is HECS indexation?
HECS debt is indexed annually on 1 June to CPI. In 2024, the indexation rate was 4.7%. This means a $50,000 balance increased by $2,350 in one day. If your income is below the threshold and you make no repayments, your debt grows every year with inflation.
Where these figures come from
Every threshold and tax rate on this page is taken from the Australian Taxation Office (ATO) — the source of record for Australian income tax, Medicare levy, HECS/HELP repayment, and capital gains tax.
- Individual income tax rates (2025–26, Stage 3) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.