HECS/HELP Repayment Calculator
Calculate how much of your HECS/HELP student loan you'll repay based on your income
Calculate Your Repayment
HECS/HELP Repayment Rates 2025-26
Repayment rates are progressive. You only pay the rate for your income bracket.
| Income Range | Repayment Rate |
|---|---|
| Below $51,000 | 0% |
| $51,000 – $59,000 | 1.0% |
| $59,001 – $65,000 | 2.0% |
| $65,001 – $70,000 | 2.5% |
| $70,001 – $85,000 | 3.0% |
| $85,001 – $97,000 | 3.5% |
| $97,001 – $108,000 | 4.0% |
| $108,001 – $120,000 | 4.5% |
| $120,001 – $135,000 | 5.0% |
| $135,001 – $150,000 | 5.5% |
| $150,001 – and above | 6.0% |
How HECS Repayments Work
Automatic Deduction
Your employer deducts HECS repayments from your pay through PAYG withholding. Make sure you've declared your HELP debt on your Tax File Number declaration.
Annual Indexation
Your HECS debt is indexed on 1 June each year based on CPI. This means your debt grows with inflation, even during years you don't earn above the threshold.
Not Interest
HECS isn't charged interest like a regular loan. It only increases by indexation. This makes it one of the most favourable debts you can have.
Voluntary Payments
You can make additional voluntary payments through myGov at any time. While there's no longer a discount for paying early, it reduces the amount that gets indexed.
Should you pay off HECS early?
Because HECS only increases by indexation (not interest), many financial advisers suggest it's better to invest extra money elsewhere rather than paying off HECS early. However, if you expect high inflation or simply want to be debt-free, voluntary repayments can make sense.
Frequently Asked Questions
The HECS/HELP repayment threshold for 2025-26 is $51,000. If your repayment income is below this amount, you won't need to make any compulsory repayments.
HECS repayment is calculated as a percentage of your repayment income (not just your taxable income). The rate ranges from 1% to 10% depending on your income level. Your employer deducts this through PAYG.
Repayment income includes your taxable income plus any total net investment losses, reportable fringe benefits, reportable super contributions, and exempt foreign employment income.
Yes, you can make voluntary repayments at any time through the ATO. While there's no bonus for early repayment anymore, paying off your debt faster means less indexation (which is applied annually based on CPI).
Yes, HECS debt is indexed annually on 1 June based on the Consumer Price Index (CPI). This means your debt increases each year with inflation, even if you're not making repayments.
HECS (Higher Education Contribution Scheme) was the original name for the student loan system. HELP (Higher Education Loan Program) is the current name and includes various loan types like HECS-HELP, FEE-HELP, and SA-HELP. Most people use HECS and HELP interchangeably.
Yes, when you start a job and complete a TFN declaration, you indicate if you have a HELP debt. Your employer then deducts repayments automatically through PAYG withholding if your income exceeds the threshold.
If you move overseas, you're still required to make repayments once your worldwide income exceeds the threshold. You must lodge a non-resident tax return each year and update your contact details with the ATO.
No, HECS/HELP debt doesn't appear on your credit report or affect your credit score. However, lenders may factor it into your borrowing capacity when assessing home loan applications.
No, there's no time limit for repaying HECS debt. You continue making compulsory repayments when above the threshold until the debt is fully repaid. The debt is also cancelled if you die or become permanently incapacitated.
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Calculate Your Full Take-Home Pay
See your complete salary breakdown including tax, Medicare, super, and HECS in one place.
Open Salary CalculatorThis calculator provides estimates based on ATO rates for 2025-26. Actual repayments may vary based on your specific circumstances. Last updated: February 2026