HECS-HELP Repayment Calculator Australia 2026-27
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 $69,528 income (2026-27), charged only on income above that threshold. 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.
All calculations run entirely in your browser using standard formulas. The calculator code does not submit your figures to GlobalCalc to obtain a result.
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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.
2026-27 marginal repayment (worked examples)
You repay 15c on each dollar of Repayment Income between $69,528 and $129,717, then $9,028 plus 17c per dollar to $186,050, capped at 10% of total income above that.
| Repayment Income | Compulsory repayment | Effective rate |
|---|---|---|
| $60,000 | $0 (below threshold) | 0% |
| $70,000 | $71 | 0.1% |
| $80,000 | $1,571 | 2.0% |
| $100,000 | $4,571 | 4.6% |
| $130,000 | $9,076 | 7.0% |
| $150,000 | $12,476 | 8.3% |
| $200,000 | $20,000 (10% cap) | 10% |
Full HECS repayment threshold table 2026-27
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. The old whole-of-income percentage scale was abolished on 1 July 2025 — you are now charged only on the income above the threshold.
The 2026-27 ATO bands
| Repayment income | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
What that works out to
| Annual income | How it is calculated | Annual repayment | Monthly repayment |
|---|---|---|---|
| $60,000 | Below threshold | $0 | $0 |
| $70,000 | 15% of $472 | $71 | $6 |
| $80,000 | 15% of $10,472 | $1,571 | $131 |
| $90,000 | 15% of $20,472 | $3,071 | $256 |
| $100,000 | 15% of $30,472 | $4,571 | $381 |
| $110,000 | 15% of $40,472 | $6,071 | $506 |
| $120,000 | 15% of $50,472 | $7,571 | $631 |
| $130,000 | $9,028 + 17% of $283 | $9,076 | $756 |
| $150,000 | $9,028 + 17% of $20,283 | $12,476 | $1,040 |
| $200,000 | 10% cap on total income | $20,000 | $1,667 |
Thresholds are indexed each 1 July. The 2025-26 minimum threshold was $67,000; for 2026-27 it is $69,528.
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 $4,571/year HECS repayment ($381/month) reduces maximum borrowing by approximately $46,000–$57,000 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 $46,000–$57,000 — a 2.3–2.85x return on the outlay.
| Remaining HECS | Monthly repayment cost | Borrowing capacity reduction | Worth paying out? |
|---|---|---|---|
| $5,000 | ~$6/mo (at $70k) | ~$800 | Cheap to clear, but little borrowing gain |
| $15,000 | ~$256/mo (at $90k) | ~$34,000 | Usually yes |
| $30,000 | ~$381/mo (at $100k) | ~$51,000 | Consider carefully |
| $60,000+ | ~$506/mo (at $110k) | ~$68,000 | Unlikely to pay all out |
As a rule of thumb, every $1/month of compulsory repayment costs roughly $120–$150 of borrowing capacity at typical assessment rates. Because the repayment is set by your income and not your balance, the borrowing gain only arrives once the balance is fully cleared.
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 indexation
HECS-HELP debt is indexed annually on 1 June. Since June 2023 the rate is the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI). The 1 June 2026 rate was 2.8% — the lowest since 2021. A $50,000 HECS debt increased by approximately $1,400 in a single day.
Indexation vs repayment progress
If your income is below the $69,528 repayment threshold, your HECS debt is growing at the indexation 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 2026-27 (marginal system)
Repayment structure
From 1 July 2025, HELP/HECS switched from the old whole-of-income scale (where crossing a band applied a higher rate to your entire income) to a marginal system — you repay only on the income above the threshold, so a pay rise never jumps your whole bill. For 2026-27 the first threshold is $69,528.
| Repayment income | Compulsory repayment | Annual repayment |
|---|---|---|
| Below $69,528 | Nil | $0 |
| $69,528 – $129,717 | 15c per $1 above $69,528 | $0 – $9,028 |
| $129,717 – $186,050 | $9,028 + 17c per $1 above $129,717 | $9,028 – $18,605 |
| $186,050+ | 10% of total repayment income | $18,605+ |
How long to pay off HECS debt Australia
Payoff time by debt size and income
| Debt size | $90k income | $120k income | $150k income |
|---|---|---|---|
| $20,000 | ~8 years | ~3 years | ~2 years |
| $40,000 | ~17 years | ~6 years | ~4 years |
| $60,000 | ~29 years | ~10 years | ~6 years |
| $80,000 | ~48 years | ~13 years | ~8 years |
| $100,000 | Not cleared at this income | ~17 years | ~10 years |
Assumes 2.8% annual indexation (the 1 June 2026 rate), a flat income and no voluntary payments. Under the marginal system, income is the dominant lever: just above the $69,528 threshold the compulsory repayment is only a few dollars a year, so a balance can grow faster than it is repaid. Above $186,050 the 10%-of-income cap applies, so repayments of $18,600+ a year clear most balances within 3–5 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 | Indexation applied |
|---|---|
| 2026 | 2.8% (lowest since 2021) |
| 2025 | 3.2% |
| 2024 | 4.0% (cut from 4.7% under the CPI/WPI rule) |
| 2023 | 3.2% (cut from 7.1% under the CPI/WPI rule) |
| 2022 | 3.9% |
| 2021 | 0.6% |
Since June 2023 indexation is the lower of CPI or the Wage Price Index. The 2023 and 2024 rates were retrospectively recalculated on that basis and the ATO applied indexation credits automatically.
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 2.8% indexation (the June 2026 rate) = $280 saved.
Voluntary payment vs investing
If expected investment return (after tax) exceeds indexation rate: invest instead. HECS indexation has been 2.8–3.2% in recent years, 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 the compulsory repayment is $1,571/yr ($131/month), which trims borrowing capacity by roughly $16,000–$20,000; on $110k ($506/month) it is around $61,000–$76,000. 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
Under the marginal system a bonus no longer lifts the rate on your whole income — only the bonus itself is charged, at 15c in the dollar (17c above $129,717). A $40,000 bonus on an $80,000 base adds $6,000 to your repayment and nothing more. Timing still matters if the extra income pushes you past $129,717 or over the $186,050 cap point.
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
Enacted from 1 July 2025: the repayment threshold was raised to $67,000 (2025-26) and indexed to $69,528 for 2026-27, and the system switched to marginal repayments — charged only on income above the threshold, not your whole income. This reduced the repayment burden on lower earners. A one-off 20% reduction of all HELP balances also applied in June 2025.
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 | Marginal rate | Calculation | Annual repay | Fortnightly |
|---|---|---|---|---|
| $55,000 | Nil | Below $69,528 | $0 | $0 |
| $65,000 | Nil | Below $69,528 | $0 | $0 |
| $75,000 | 15c | 15% of $5,472 | $821 | $31.57 |
| $90,000 | 15c | 15% of $20,472 | $3,071 | $118.11 |
| $110,000 | 15c | 15% of $40,472 | $6,071 | $233.49 |
| $130,000 | 17c | $9,028 + 17% of $283 | $9,076 | $349.08 |
| $190,000+ | 10% cap | 10% of total income | $19,000+ | $730.77+ |
Cost of indexation vs repayment
A $40,000 debt at 2.8% indexation grows $1,120 per year. On $75k income the compulsory repayment is only $821/yr, so the balance still creeps up by about $299. On $90k the $3,071/yr repayment gives a net reduction of $1,951. Higher earners are far more effective at paying down — someone on $190,000 hits the 10% cap at $19,000/yr and cuts the balance by $17,880 after indexation.
Pay before June 1 indexation
Voluntary payment before 1 June avoids that year's indexation on the paid amount. A $10,000 voluntary payment at the 2.8% June 2026 rate saves $280. At the 7.1% headline rate originally struck in 2023 it would have saved $710. Small but positive ROI.
Early career scenarios
Graduate on $60k with $35k HECS: no compulsory repayment at all — income is below the $69,528 threshold, so the balance simply grows with indexation until earnings rise. The same graduate on $90k clears it in ~14 years; on $120k, ~6 years. Income growth is by far 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. $20k of packaging on an $80k salary makes your HRI $100,000 — the repayment goes from $1,571 to $4,571, an extra $3,000 a year. 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
A large bonus adds to your HRI for that year, but only the extra income is charged. A $40k bonus on an $80k base makes HRI $120k — the repayment rises from $1,571 to $7,571, an extra $6,000 at 15c in the dollar. There is no whole-of-income band cliff any more, so timing only matters near $129,717 or the $186,050 cap point.
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 an ongoing commitment — roughly $12,000–$15,000 less borrowing capacity for every $100/month of compulsory repayment. $500/month HECS: about $60,000–$75,000 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 is just $71/year (~$3/fortnight) — 15% of the $472 above the $69,528 threshold. At this income HECS is a rounding error in your budget; income tax and the Medicare levy do the real work. Budget around net income, not gross.
HECS vs emergency fund priority
Always build emergency fund first (3-6 months expenses). HECS indexation is low (2.8% in June 2026) 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 your marginal rate but adds to HRI. Personal deductible contributions are no different — once you claim the deduction they count as reportable super contributions and are added back to HRI too. Non-concessional (after-tax, no deduction) contributions are the only kind that leave HRI untouched.
HECS-free investment accounts
Personal deductible super contribution: saves income tax, but it is added back to HELP repayment income — it does NOT reduce your HECS repayment. Non-concessional contributions (no deduction claimed) leave HRI unchanged. 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
On the marginal system, timelines swing hard on income. Law/medicine graduates: $60k-$80k debt typical, $120k-$150k income expected = ~6-13 years. Teaching/nursing: $25k-$40k debt on $75k-$90k income = 10-20+ years, because the repayment just above the threshold is small relative to indexation. Engineering: $40k-$50k debt on $90k-$120k income = ~6-23 years depending where in that range you sit. Voluntary payments compress all of these.
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 was originally struck at 7.1%, adding $1,775 to an average $25k debt — more than a typical voluntary repayment for many. The CPI/WPI cap then cut that year to 3.2% retrospectively, and 2024 from 4.7% to 4.0%, with ATO credits applied automatically. June 2025 was 3.2% and June 2026 was 2.8%.
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, as if that job were your only income. Because your combined income sits further above the $69,528 threshold than any single employer can see, you are usually under-withheld. 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 $69,528 in 2026-27, and apply only to the income above that threshold (the marginal system in force since 1 July 2025). 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 $381/month HECS repayment reduces maximum home loan borrowing capacity by approximately $46,000–$57,000.
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, at the lower of CPI or the Wage Price Index. The 1 June 2026 rate was 2.8%, so a $50,000 balance increased by $1,400 in one day. If your income is below the $69,528 threshold and you make no repayments, your debt grows every year with indexation.
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 (2026–27) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds & rates (2026–27) — ATO — Study and training support loans: rates and repayment thresholds.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.