🎓 HECS-HELP Repayment Calculator 2025–26
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Annual HECS Repayment
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Repayment rate
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Monthly repayment
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Fortnightly repayment
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Est. years to pay off
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Current debt balance
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Indexation added this year
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2025–26 HECS-HELP Repayment Thresholds
HECS-HELP repayments are compulsory once your income reaches the minimum threshold. The rate increases with income. You don't repay anything until you earn over the threshold — no matter how large your debt.
| Income Range | Repayment Rate |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,738 | 1.0% |
| $62,739 – $66,528 | 2.0% |
| $66,529 – $70,389 | 2.5% |
| $70,390 – $74,514 | 3.0% |
| $79,007 – $83,737 | 4.0% |
| $88,758 – $94,044 | 5.0% |
| $99,649 – $105,553 | 6.0% |
| $111,805 – $118,436 | 7.0% |
| $125,459 – $132,924 | 8.0% |
| $140,762 – $148,984 | 9.0% |
| $157,593+ | 10.0% |
Frequently Asked Questions
How does HECS-HELP indexation work?▾
Your HECS-HELP debt is indexed to CPI (Consumer Price Index) on 1 June each year. This means your debt grows with inflation — it's not interest, but the effect is similar. In recent years indexation has been 3.9–7.1%. The government introduced a cap so indexation cannot exceed the Wage Price Index (WPI), whichever is lower. Voluntary repayments reduce your balance before indexation is applied.
Should I make voluntary HECS repayments?▾
Voluntary repayments reduce your debt immediately and lower the base that indexation is calculated on. If your debt is being indexed at 4% and you could earn 5%+ on savings or investments, investing may be better. But if you're on a lower income and expect your debt to grow faster than you repay it, voluntary repayments make sense. There's no 10% bonus for voluntary repayments anymore — that was removed in 2017.
Does HECS affect my borrowing capacity for a home loan?▾
Yes. Banks count your compulsory HECS repayment as a liability when assessing your borrowing capacity. For example, if you earn $90,000 and repay $4,500/year in HECS, lenders treat that as a recurring expense. This can reduce how much you can borrow by $30,000–$80,000 depending on the lender and your other expenses. Paying off your HECS before applying for a mortgage can meaningfully increase your borrowing power.
What happens to HECS if I move overseas?▾
Since 2017, Australians living overseas must make HECS-HELP repayments based on their worldwide income if it exceeds the repayment threshold. You must report your overseas income to the ATO each year and make repayments accordingly. Failing to do so can result in penalties. Your debt is also still indexed each year regardless of where you live.
Is there a time limit on paying off HECS debt?▾
No — there's no time limit. Your debt stays until it's fully paid off, regardless of how long it takes. If you never earn above the repayment threshold, you'll never be required to repay. However, the debt is written off when you die and does not pass to your estate.
Disclaimer: Repayment thresholds and indexation rates are based on 2025–26 ATO figures and are subject to change. This calculator provides estimates only. Visit ato.gov.au for your actual HECS-HELP balance and repayment obligations.
Related Tools
- Tax Return Calculator — Estimate your ATO refund or bill
- Income Tax Calculator — Full tax breakdown
- Salary After Tax — Take-home pay including HECS deduction
- Mortgage Calculator — See how HECS affects your borrowing