HECS-HELP Calculator
Your compulsory repayments and when your debt will be paid off.
| Tax year | Repayment | Balance |
|---|---|---|
| 2026-27 | $1,571 | $24,229 |
| 2027-28 | $1,931 | $23,074 |
| 2028-29 | $2,302 | $21,510 |
| 2029-30 | $2,684 | $19,515 |
| 2030-31 | $3,077 | $17,063 |
| 2031-32 | $3,482 | $14,127 |
| 2032-33 | $3,899 | $10,679 |
| 2033-34 | $4,329 | $6,692 |
| 2034-35 | $4,772 | $2,134 |
| 2035-36 | $2,202 | $0 |
How this calculator works
HECS-HELP is different from other debt: no interest, but the balance is indexed to the lower of CPI or WPI every June - so the debt can still grow in high-inflation years.
Recent indexation: 2022 (3.9%), 2023 (7.1%, retrospectively reduced to 3.2%), 2024 (4.7%), 2025 (3.2%). Since 1 July 2025 you repay 15c for each dollar of repayment income above the threshold ($69,528 in 2026-27), rising to 17c higher up and capped at 10% of total income.
This projection shows how long your debt takes to disappear based on current balance, income and expected indexation.
Frequently asked questions
Usually no. HECS is indexed to CPI/WPI (whichever is lower), so effectively it's zero real interest. Money that would go to HECS is often better invested (long-term returns beat CPI) or in a mortgage offset. But if you hate debt or are near paying it off, there's no downside to clearing it.
You can pay any amount at any time via BPAY or the ATO portal. It reduces the balance before June indexation, so a voluntary payment made in May saves you a small amount of indexation on that portion. Voluntary payments do NOT reduce your compulsory repayments through PAYG.
For FY 2026-27, compulsory repayments start above $69,528 of repayment income ($67,000 in 2025-26). Repayment income includes reportable super, reportable fringe benefits and net investment losses, not just taxable income. Below the threshold, no compulsory repayment is required.
No. HECS uses 'repayment income' which adds back salary sacrifice, fringe benefits and net investment losses. So salary sacrificing to super won't reduce your HECS bill.
1 June each year, based on the previous 4 quarters of CPI or WPI. From 2023 onwards it's the lower of the two, reducing indexation shock in high-CPI years.
Yes. Since 2017, you must report worldwide income to the ATO if living overseas and still owing HECS. Compulsory repayments apply based on your global income.
The projection uses your income growth assumption and the current HECS rate schedule. Real-world indexation varies and future thresholds may change. Use it as a rough guide, not gospel.
Tips
Each financial year, starting with the one selected, I work out your compulsory repayment using the selected year's ATO schedule (15c per dollar over the threshold, 17c higher up, capped at 10% of total income), apply indexation, and deduct the repayment. Thresholds are held at the selected year's values, so later years are slightly conservative. High indexation years can make your balance grow even while you're repaying.
Australian HECS/HELP Repayment Calculator (FY 2026–27)
If you have a HECS or HELP debt from studying at university or TAFE, you have compulsory repayments coming out of every pay — but the way it actually works surprises most Australians. Repayments are calculated on your total repayment income, indexation happens every June, and since 1 July 2025 you only repay on the part of your income above the threshold. This calculator uses the official ATO thresholds to show how much you will repay each year and how long until your debt is gone.
Whether you are a recent graduate wondering when the debt disappears, considering voluntary repayments, or trying to decide between paying down HECS versus investing that money instead, this guide walks through every angle.
How HECS/HELP repayments work in 2026–27
HECS/HELP is income-contingent — you only repay when your repayment income is above a threshold. From 2025–26 the old system (a percentage of your whole income, rising in 18 bands) was replaced with a marginal system: you pay a set number of cents for each dollar above the threshold, much like income tax. For 2026–27 the threshold is $69,528. Below that, you owe nothing.
Above the threshold, your employer withholds an extra amount each pay based on your annual salary estimate. At tax time, the ATO reconciles based on your actual income and applies the compulsory repayment to your loan.
FY 2026–27 repayment rates
| 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 above | 10% of total repayment income |
For 2025–26 the same structure applied with a $67,000 threshold ($8,700 plus 17c over $125,000; 10% of total income from $179,286). Source: Australian Taxation Office — study and training loan repayment thresholds.
What is "repayment income"? (It is more than your salary)
This trips up almost everyone. Your repayment income is not just your salary — it adds back several items to prevent people from artificially lowering their taxable income to dodge repayments. It includes:
- Taxable income (salary, wages, business income)
- Reportable fringe benefits (novated lease packaging, salary sacrificed items)
- Reportable super contributions (salary sacrifice into super)
- Net investment losses (negatively geared property, share margin loans)
- Exempt foreign employment income
So if you salary sacrifice $15,000 into super to reduce tax, that $15,000 still counts toward your HECS repayment income. This catches out plenty of high earners.
Indexation — the silent balance grower
Every year on 1 June, your HECS/HELP balance is indexed by inflation. From 2024, indexation is calculated using the lower of CPI or WPI (Wage Price Index), so annual increases are usually 3–4%.
Indexation applies to the balance you owe as at 1 June — after deducting any compulsory or voluntary repayments made by that date. This is why timing matters: a voluntary repayment made on 30 May reduces the balance being indexed, saving you indexation dollars. A voluntary payment on 2 June misses that year's indexation entirely.
Example: If your balance is $30,000 and indexation is 4%, you would be charged $1,200 extra. A $5,000 voluntary payment made before 1 June means indexation is applied to $25,000 instead — saving $200 that year.
Should you make voluntary repayments?
This is the great HECS debate. The financial answer: it depends on indexation vs your investment return.
Case for voluntary payments
- Guaranteed "return" equal to indexation rate (typically 3–4%)
- Improves your borrowing power for a mortgage — lenders subtract your HECS repayment from serviceable income
- Psychological win — clears a persistent debt
Case against voluntary payments
- HECS is the cheapest debt you will ever have (no interest, only indexation)
- Investing at ~8% long-term average (ETFs) usually beats 3–4% indexation
- Debt disappears at death — never inherited
- Repayments only occur while you earn above threshold — flexibility in career breaks, parental leave
For most Australians earning median wages, investing the extra money is mathematically better — but if you are close to buying a house or the psychological weight of the debt bothers you, paying it down has real benefits. Use the compound interest calculator to model both paths.
Worked examples
Example 1 — Graduate on $75,000 salary
- Repayment income: $75,000
- $5,472 above the $69,528 threshold × 15c
- Annual repayment: $821 (~$32/fortnight)
- A $40,000 balance will take many years to clear at this income — indexation can outpace a small repayment
Example 2 — Mid-career on $110,000 salary
- Repayment income: $110,000
- $40,472 above the threshold × 15c
- Annual repayment: $6,071 (~$233/fortnight)
- Starting balance $35,000: roughly 6–7 years to pay off, depending on indexation and pay rises
Example 3 — High earner on $180,000 with salary sacrifice
- Salary: $180,000, salary sacrificed to super: $10,000
- Taxable income: $170,000, but repayment income: $180,000 (super added back)
- $9,028 plus 17c × $50,283 over $129,717
- Annual repayment: $17,576 (~$676/fortnight)
- Salary sacrifice does not reduce HECS repayment
HECS and buying a house
Australian lenders treat HECS as an ongoing expense that reduces the amount you can borrow. Every $1,000 of HECS repayment per year cuts borrowing power by roughly $10,000–$15,000, depending on the lender.
If you are close to a home loan application and have the cash to fully repay your HECS balance, doing so can lift your borrowing power significantly — but only if the total balance is small enough that paying it off does not gut your deposit. The borrowing power calculator lets you model both scenarios.
Frequently asked questions
Do I have to pay HECS if I move overseas?
Yes. Since 2017, Australians living overseas earning above the threshold must lodge a return with the ATO and make compulsory repayments. The threshold is calculated on your worldwide income.
Can HECS be included in bankruptcy?
No. HECS/HELP debts are exempt from bankruptcy discharge. They will remain and continue accruing indexation.
What happens to my HECS if I die?
It is written off. HECS/HELP debts are not inherited or paid from your estate — they simply disappear.
Do I still owe HECS if I never earn above the threshold?
No compulsory repayments are required, but indexation still applies each year, so the balance keeps growing. It will not be forgiven until death.
Does my employer pay my HECS?
Your employer withholds extra tax to cover the expected repayment, but the actual repayment is calculated and applied to your loan at tax time based on your real income. If they withhold too much, you get a refund.
Are there any discounts for early or bulk payments?
Not since 2017 — the old 5–10% voluntary repayment bonus was scrapped. Today, a voluntary repayment just reduces your balance dollar-for-dollar (plus the indexation you save).
Related calculators
This calculator is a general guide only and does not constitute financial advice. Repayment rates and thresholds are based on ATO figures for FY 2025–26 and 2026–27. For specific advice about your loan, consult the ATO or a registered tax agent.
Rates checked September 2026 against the ATO.