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AussieCalc

HECS / HELP Repayment Calculator

Estimate your annual compulsory repayment and how long it will take to clear your HELP debt.

When to use

When you want to know how much of your salary goes to HELP repayments, or how many years until your debt is cleared.

Who it's for

Graduates and students with an outstanding HECS or HELP debt, including those considering voluntary repayments.

What you'll need

Your current HELP balance (find it on myGov) and your gross annual salary.

FY2026–27 ATO repayment bands
$

Find your current balance on myGov under 'Study and training'.

$

Your gross annual salary. ATO 'Repayment Income' may include investment or fringe benefit income, which can push you into a higher repayment band.

$

Optional. Any extra you plan to pay on top of your compulsory amount.

Estimates use ATO FY 2026–27 repayment bands and assume 2.5% annual indexation. Check ato.gov.au to verify current rates. For general guidance only — not financial advice.

How HELP repayments work

Based on taxable income

Your compulsory repayment is set by your taxable income each financial year, not your debt balance. From 1 July 2025, the rate applies only to income above each threshold, not your full income.

Marginal rate system

Repayment rates are now marginal, each band rate applies only to income above that threshold. Crossing a higher band adds only the marginal rate on the extra income, eliminating the cliff effect of the old flat-rate system.

Collected via tax return

Your employer withholds an estimated HELP amount throughout the year. The final compulsory repayment is calculated when you lodge your annual tax return and reconciled with ATO records.

About HELP indexation

On 1 June each year, the Australian Taxation Office (ATO) applies a Consumer Price Index (CPI) adjustment to your outstanding HELP balance. This is not interest, it is a cost-of-living adjustment that keeps the real value of the debt in line with inflation. The indexation rate is set by the Australian Government each year; it has ranged from 1.0% to 7.1% in recent years. Your compulsory repayment rate is not affected by indexation, it is determined by your taxable income and the ATO repayment schedule. Making voluntary repayments before 1 June reduces the balance that indexation is applied to, directly reducing that year's indexation cost.

What if your income was higher?

Estimated HELP repayments at different income levels, updates as you change your inputs

IncomeBand rateAnnual repayment
$70,000(current)15.0%$71
+$5,000($75,000)15.0%$821
+$10,000($80,000)15.0%$1,571
+$20,000($90,000)15.0%$3,071

Uses ATO FY2026–27 repayment bands (marginal rates on income above threshold). Estimated payoff assumes $30,000 balance and 2.5% annual indexation.

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ETF Growth Calculator

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Debt balance over time

Projected repayment timeline — hover to inspect each year

Remaining balanceCumulative repaid
Line chart showing HECS debt balance declining over projected years as repayments are made
PeriodRemaining balanceCumulative repaid
Now$30K$0
Yr 1$31K$71
Yr 2$31K$142
Yr 3$32K$213
Yr 4$33K$284
Yr 5$34K$355
Yr 6$34K$426
Yr 7$35K$497
Yr 8$36K$568
Yr 9$37K$639
Yr 10$38K$710
Yr 11$38K$781
Yr 12$39K$852
Yr 13$40K$923
Yr 14$41K$994
Yr 15$42K$1K
Yr 16$43K$1K
Yr 17$44K$1K
Yr 18$45K$1K
Yr 19$46K$1K
Yr 20$47K$1K
Yr 21$48K$1K
Yr 22$50K$2K
Yr 23$51K$2K
Yr 24$52K$2K
Yr 25$53K$2K
Yr 26$54K$2K
Yr 27$56K$2K
Yr 28$57K$2K
Yr 29$58K$2K
Yr 30$60K$2K
Yr 31$61K$2K
Yr 32$63K$2K
Yr 33$64K$2K
Yr 34$66K$2K
Yr 35$67K$2K
Yr 36$69K$3K
Yr 37$71K$3K
Yr 38$72K$3K
Yr 39$74K$3K
Yr 40$76K$3K
Yr 41$78K$3K
Yr 42$79K$3K
Yr 43$81K$3K
Yr 44$83K$3K
Yr 45$85K$3K
Yr 46$87K$3K
Yr 47$90K$3K
Yr 48$92K$3K
Yr 49$94K$3K
Yr 50$96K$4K

Balance grows each June via CPI indexation before repayments are credited. At lower incomes, indexation can outpace repayments.

How HECS/HELP repayments actually work

How HELP repayments changed from 1 July 2025

From 1 July 2025, HELP repayments switched from a flat-rate system to a marginal rate system. You now repay only on income above the $69,528 threshold, not on your total income. At $80,000, that means 15% on $10,472 (the amount above $69,528) = $1,571 per year. Under the old pre-2025 system, a flat percentage applied to your entire income, crossing a threshold could add hundreds overnight. The marginal system eliminates that cliff. Verify current FY2026–27 rates at ato.gov.au.

How indexation grows your debt before repayments land

On 1 June each year, the ATO applies CPI indexation to your entire outstanding HELP balance before crediting any repayments. In 2023, the rate was 7.1%: a $30,000 debt grew by $2,130 in a single day. In 2024, it was 4.7% ($30,000 → $31,410). Only after that increase does the ATO credit your compulsory repayment. At 2.5% indexation, a $1,750 repayment on a $30,000 debt leaves a net reduction of $1,000; the remainder offsets the indexation cost. At the elevated 7.1% rate seen in 2023, that same repayment left a net reduction of only $620, which is why debts can take far longer to clear than expected during high-inflation years.

Voluntary repayments: When the maths stacks up

A voluntary repayment made before 1 June avoids indexation on that amount, effectively earning a guaranteed 'return' equal to the indexation rate. At the 4.7% rate applied in 2024, a $5,000 voluntary repayment before 1 June saved $235 in indexation, comparable to a high-interest savings account. At typical indexation (2.5–3.5%), the case for paying ahead is less clear-cut: money invested in a diversified ETF may grow faster. The decision comes down to current indexation, your investment alternatives, and how much the debt bothers you.

HECS debt and your home loan borrowing capacity

Your compulsory HECS repayment counts as a committed monthly expense when lenders calculate your mortgage serviceability. At $80,000 income under FY2026–27 rates, the compulsory repayment is $1,571/year or about $131/month (15% on the $10,472 above the $69,528 threshold). Most lenders reduce your maximum borrowing capacity by roughly $30,000–$50,000 for every $5,000 in annual committed expenses, so a $1,571 HECS repayment can reduce your home loan capacity by approximately $9,000–$16,000 depending on your lender and other commitments. Paying down HECS before applying for a mortgage can meaningfully lift your borrowing power.

HELP indexation is not interest

Each year on 1 June, the Australian Taxation Office (ATO) applies a Consumer Price Index (CPI) adjustment to your outstanding HELP balance. This is a cost-of-living adjustment, not interest. The government sets the rate annually based on the CPI All Groups figure. In recent years it has ranged from 1.0% to 7.1%. Your compulsory repayment rate is unaffected by indexation, it is always determined by your taxable income and the ATO repayment schedule. Because indexation is applied to your balance before repayments are credited, a voluntary repayment made before 1 June reduces the principal that indexation is calculated on.

Worked examples

$60,000 income with $25,000 HELP debt
At $60,000, income is below the FY2026–27 minimum threshold of $69,528, no compulsory repayment applies. Indexation still adds $625 (2.5% × $25,000) to the balance on 1 June, so the debt grows without any mandatory payments. Voluntary repayments are the only way to reduce the balance until income rises above the $69,528 threshold.
$80,000 income with $30,000 HELP debt
At $80,000, the FY2026–27 compulsory repayment is 15% on income above $69,528 ($10,472 × 15% = $1,571/year). Indexation adds $750 (2.5% × $30,000) before credit. Net reduction: approximately $821/year. At constant income, the debt clears in approximately 26 years. Voluntary repayments accelerate this significantly.
$120,000 income with $40,000 HELP debt
At $120,000, the FY2026–27 repayment is 15% on income above $69,528 ($50,472 × 15% = $7,571/year). Indexation adds $1,000 (2.5% × $40,000) before credit. Net reduction: approximately $6,571/year. At constant income, the debt clears in approximately 6 years. In practice, income typically rises over time, further shortening the actual repayment period.

Common mistakes

Using the old flat-rate tables on the new marginal system
Since 1 July 2025, HELP repayments are marginal, the rate applies only to income above each threshold, not your total income. Under FY2026–27 rates, $80,000 income produces a $1,571 compulsory repayment (15% on $10,472 excess above $69,528), not the $3,200 the old 4% flat-rate system would have produced. The threshold cliff effect of the old system is also eliminated, earning $1 more above a threshold adds only cents to your repayment.
Not accounting for indexation timing
Indexation is applied to your outstanding balance on 1 June, before your compulsory repayment is credited. This means a $1,571 compulsory repayment on a $30,000 debt at 2.5% indexation reduces the balance by about $821 net; the remaining $750 offsets the June indexation cost. Voluntary payments made before 1 June reduce the balance before indexation is calculated, directly reducing that year's indexation cost.
Assuming voluntary repayments are always the best use of spare cash
Voluntary repayments are a guaranteed 'return' equal to the indexation rate applied to your debt. At 4.7% (the 2024 rate), paying down HELP early was genuinely competitive with savings accounts. At 2.5–3%, a diversified ETF or offset account may produce better results. The right answer depends on current indexation, your investment alternatives, and your own risk preference.

Frequently asked questions

How is my HECS/HELP repayment calculated?
From 1 July 2025, HELP repayments are calculated as a marginal rate on income above each threshold, not a flat percentage of your total income. In FY2026–27, the minimum threshold is $69,528. Income between $69,529 and $129,717 attracts a 15% marginal rate on the excess; $129,718–$186,050 attracts 17% on the excess above $129,717 (plus $9,028 base); above $186,050, the repayment is 10% of your total income. The amount is withheld by your employer and reconciled when you lodge your tax return. Check ato.gov.au for the latest figures.
What is indexation and how does it affect my HELP debt?
On 1 June each year, the ATO applies a CPI-based indexation rate to your outstanding HELP balance. This means your debt can grow faster than you repay it if your repayments are low. In 2023, indexation was 7.1%; in 2024 it was 4.7%. This calculator uses a 2.5% estimate for long-term projections, consistent with the mid-point of the RBA's 2–3% inflation target.
Can I voluntarily repay my HECS debt?
Yes. You can make voluntary payments at any time through your myGov account or by paying the ATO directly. Voluntary repayments are not tax-deductible but reduce your balance immediately, which lowers future indexation and shortens your repayment timeline.
Does HECS/HELP debt affect my borrowing capacity?
Yes. Lenders factor in your compulsory HECS repayment as a monthly expense when assessing your home loan application. Even a $2,500/year repayment can reduce your borrowing capacity by $30,000–$50,000 depending on your lender and other commitments.
When does my employer start withholding HELP repayments?
When you complete a Tax File Number (TFN) declaration or withholding declaration, you can notify your employer that you have a HELP debt. Your employer then withholds additional tax throughout the year. The exact compulsory amount is finalised when you lodge your annual tax return.
What happens to my HECS/HELP debt if I move overseas?
Since 2017, Australians with HECS/HELP debt who live or work overseas are required to make compulsory repayments on their worldwide income if it exceeds the repayment threshold. The overseas levy works much like the domestic system: you report your worldwide income to the ATO each year and pay the applicable repayment rate. The debt does not get written off by moving overseas, it continues to accrue indexation on 1 June each year regardless of where you live. If you fail to lodge your overseas income assessment, the ATO may apply penalties. You must notify the ATO within 7 days of leaving Australia if you intend to be away for 183 days or more.
How do I check my current HECS/HELP balance?
Log into myGov and link your ATO account. Under 'Tax', select 'Manage my HELP debt' to see your current outstanding balance, any indexation applied on 1 June, and repayments credited to date. Your balance is also shown on your annual Notice of Assessment after lodging your tax return. If you are checking before 1 June, the balance shown is pre-indexation, the new balance after CPI is applied appears in myGov within a few business days of 1 June each year. Voluntary repayments made via BPAY to the ATO are usually reflected within 3–5 business days.

How this calculator works

Enter your current HECS/HELP debt balance and your income. The calculator applies the FY2026–27 compulsory repayment schedule to determine your annual repayment amount, then projects your balance year by year until the debt is paid off. Each year, before your repayment is applied, the ATO indexes your balance to the consumer price index (CPI), Australia's official measure of consumer price inflation, which tracks price changes across a broad basket of goods and services, meaning your debt grows slightly each year before you make any payment.

Repayments are income-contingent and marginal: the rate applies to income above each threshold only, not your total income. The FY2026–27 system has three marginal bands (15%, 17%, and 10% for the top band on total income), replacing the 19-band flat-rate system used before 1 July 2025. Because the rate is marginal, crossing a band threshold no longer causes a sudden jump in your total repayment, each extra dollar of income above a threshold adds only cents to your repayment obligation.

The projection uses an estimated indexation rate (default 2.5%, consistent with the mid-point of the RBA's 2–3% inflation target). Actual indexation varies each year, recent rates have been higher (4.7% in 2024, 7.1% in 2023). The result is indicative, your actual repayments are based on your final assessed taxable income for the year. Check your current balance and annual indexation notice via myGov before making any voluntary repayment decisions.

Methodology

  • Assumptions: FY2026–27 repayment income thresholds and rates (marginal system effective 1 July 2025); future HECS/HELP indexation estimated at 2.5% p.a. (mid-point of the RBA's 2–3% long-run target); income assumed constant across the projection period unless varied.
  • Calculation: Annual repayment = marginal band rate × (income above threshold) for bands 1–2; top band ($186,051+) = 10% of total income; balance updated annually as (balance × (1 + indexation rate)) − repayment.
  • Limitations: Income growth, indexation rate changes, and new study debts accumulating from future enrolments are not modelled; projection is indicative only.

Sources

Last updated: July 2026

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