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HECS / HELP Repayment Calculator

Annual compulsory repayment using all 18 FY 2024–25 income thresholds, with payoff projection.

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Annual Compulsory Repayment

$3,825

(4.5% of income)

Repayment rate4.5%
Annual repayment$3,825
Monthly repayment$319
Weekly repayment$74
Current debt$28,000
Annual indexation (~4%)+ $1,120
Net annual debt reduction$2,705
Estimated debt-free year2035 (9 yrs)

FY 2024–25 minimum repayment threshold: $54,435. Debt is indexed to CPI each year on 1 June.

Repayment rate applies to your taxable income. Indexation is applied on 1 June each year. Voluntary repayments can reduce your debt faster.

📅 FY 2025–26 thresholds · Source: ATO — HECS-HELP

FY 2025–26 HECS-HELP repayment bands

Your compulsory repayment is the percentage shown below, applied to your repayment income(taxable income plus certain additions). The rate applies to your entire repayment income — not just the amount above the threshold.

Repayment incomeRate
Below $54,435Nil
$54,435 – $62,8491.0%
$62,850 – $66,6202.0%
$66,621 – $70,6182.5%
$70,619 – $74,8553.0%
$74,856 – $79,3463.5%
$79,347 – $84,1074.0%
$84,108 – $89,1544.5%
$89,155 – $94,5035.0%
$94,504 – $100,1735.5%
$100,174 – $106,1856.0%
$106,186 – $112,5566.5%
$112,557 – $119,3097.0%
$119,310 – $126,4687.5%
$126,469 – $134,0568.0%
$134,057 – $142,1008.5%
$142,101 – $150,6269.0%
$150,627 – $159,6639.5%
$159,664 and above10.0%

Frequently asked questions — HECS/HELP

What is the HECS-HELP repayment threshold for 2025–26 and 2026–27?

The minimum repayment income threshold for FY 2025–26 is $54,435. For FY 2026–27, the threshold rises significantly to $69,528. Below the applicable threshold in each year, no compulsory repayment is due. Above the threshold, repayments range from 1.0% up to 10.0% for incomes of $159,664 or more. There are 18 repayment bands in total.

How is HECS-HELP debt indexed?

HECS-HELP debt is indexed to the Consumer Price Index (CPI) on 1 June each year. If your compulsory repayments are less than the annual indexation applied, your debt can actually grow despite making payments. Recent indexation rates have been higher than historical averages — 3.9% in 2023 and 4.7% in 2024. Always factor indexation into your payoff timeline estimate.

Does HECS-HELP affect my borrowing capacity for a home loan?

Yes — Australian lenders include your compulsory HECS-HELP repayment in their serviceability calculations as a reduction in net income. For example, at $90,000 income with a 5.0% repayment rate ($4,500/year), lenders treat your effective income as $4,500 lower. This can reduce your borrowing capacity by $50,000–$80,000 depending on the lender.

Should I make voluntary HECS-HELP repayments?

It depends on your situation. Voluntary repayments make sense when: (1) indexation is higher than the after-tax return you'd earn on savings; (2) you need to maximise your home loan borrowing capacity; (3) you want to eliminate the psychological stress of the debt. However, unlike credit card debt, HECS-HELP is 0% interest (only CPI indexed), so it's not always the optimal use of spare cash if you have higher-rate debt or investment opportunities.

How is HECS-HELP repayment calculated?

Your compulsory repayment is a percentage of your repayment income (broadly your taxable income plus reportable fringe benefits, reportable super contributions, and total net investment losses). The percentage increases with income, using 18 bands from 1% at $54,435 to 10% above $159,664. Your employer withholds the relevant amount from your salary if you advise them of your HECS debt on your Tax File Number declaration.

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