Calculator · FY 2026–27
HECS-HELP repayment calculator
Work out your compulsory HECS-HELP, VSL, TSL, SSL or SFSS repayment for the current financial year, plus how long until your debt is paid off. Uses the new marginal system that took effect on 1 July 2025.
HECS-HELP repayment calculator
Taxable income + reportable fringe benefits + reportable super + net investment losses.
From FY 2025–26 the system is marginal (similar to income tax).
Project years to pay off (optional)
Find it on your ATO account via myGov.
WPI-capped since 2024. Recent average ~3–4%.
Annual HECS-HELP repayment
FY 2026-27Projection (flat income, 3% indexation)
Your repayment doesn't cover the annual indexation — your debt is projected to grow for 50+ years. Consider voluntary repayments, salary sacrifice into super (which lowers your repayment income), or talking to a financial counsellor.
How the new HECS system works
From 1 July 2025, HECS-HELP repayments are calculated using a marginal bracket system, the same way income tax is. The change replaced the old flat-rate system, where crossing a threshold meant a flat percentage of your entire repayment income — which created situations where a small pay rise could cost more than it earned.
Under the marginal system, you only pay the higher rate on the income above each threshold. For FY 2026–27 the threshold is approximately $69,528 with a 15% rate on income between the threshold and $125,000. Higher bands apply above that, capping at 10% of total repayment income for very high earners.
Repayment income vs taxable income
Your repayment income is not the same as your taxable income. It is your taxable income plus:
- Reportable fringe benefits
- Reportable employer super contributions (including any pre-tax salary sacrifice)
- Total net investment loss (e.g. rental property losses)
- Exempt foreign employment income
For most employees on a single salary with no investment losses, the difference is small. For people with large salary-sacrifice contributions or negatively geared property, repayment income can be significantly higher than taxable income.
Voluntary repayments and the indexation question
On 1 June each year, the ATO indexes your HELP balance by the lower of CPI and the Wage Price Index (WPI). This means the balance grows even if you are not making repayments (e.g. if you are earning below the threshold). Whether to make voluntary repayments depends on the indexation rate versus what your money could earn elsewhere.
As a rough rule: if indexation is around 3% and you can earn 5%+ in a high-interest savings account, keeping the cash makes sense. If indexation is 4% and your money is sitting in a 4% mortgage offset or earning 0.1% in a transaction account, paying down HECS is the better move. The ATO's voluntary repayment calculator lets you model the impact.
Frequently asked questions
How is HECS-HELP repayment calculated under the new system?
From 1 July 2025 HECS-HELP uses a marginal bracket system, similar to income tax. You only pay the higher rate on the income above each threshold, not on your whole income. For FY 2025–26 the threshold is $54,435 with a 15% rate on income between $54,435 and $125,000. For FY 2026–27 the lower threshold is around $69,528. The calculator applies the marginal method automatically based on the year you select.
When do I start repaying HECS?
You start making compulsory repayments once your repayment income exceeds the threshold for the financial year. For FY 2026–27 the threshold is approximately $69,528. For FY 2025–26 it was $54,435. Your employer withholds the repayment through PAYG if you tick the HECS-HELP box on your Tax File Number declaration.
What is "repayment income" and why does it differ from my salary?
Repayment income is your taxable income plus reportable fringe benefits, reportable employer super contributions (including any salary sacrifice into super), total net investment loss, and exempt foreign employment income. For most employees on a single salary with no rental losses, repayment income is close to taxable income. For people with salary sacrifice or negative gearing, it can be higher.
How is my HECS balance indexed?
On 1 June each year the ATO increases your HECS-HELP balance by the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI) for the previous 12 months. The WPI cap was introduced by the Universities Accord Act 2024 — previously the balance was indexed by CPI alone. Recent indexation rates: 7.1% (June 2023), 4.7% (June 2024), 3.2% (June 2025), 2.8% (June 2026).
Can I make voluntary HECS repayments?
Yes. You can make voluntary repayments to the ATO at any time via BPAY using the reference on your ATO account (linked to your myGov). There is no minimum and no penalty for early repayment. Voluntary repayments reduce your balance, which means less interest compounds each year. Whether to make voluntary repayments depends on the indexation rate versus what your money would earn (or save on interest) elsewhere.
What if my employer withholds the wrong HECS amount?
If you ticked the HECS box on your TFN declaration and your employer is using the right HELP code, the PAYG withholding should be correct. If you think it is wrong, check your income and the threshold, and consider using the ATO's voluntary repayment calculator. Any over- or under-withholding is reconciled at tax time.
What happens to my HECS debt if I move overseas?
Your HELP debt remains and continues to be indexed on 1 June each year while you are overseas. You are still required to make compulsory repayments if your worldwide repayment income exceeds the threshold. The ATO has a process for making voluntary overseas repayments, and you can update your contact details via myGov. After 6 months overseas, the indexation on your balance is calculated differently — see the ATO's overseas repayment page for details.
HECS as a debt repayment problem
HECS-HELP is unusual among Australian debts in that it is not amortising in the traditional sense. There is no fixed monthly bill, no term, and no penalty for missing a payment — your employer withholds the right amount (or the ATO assesses it at tax time) and the balance grows by indexation every June. For most people, this makes it the most favourable debt they will ever have, and they should not rush to pay it off ahead of higher-rate debts like credit cards or personal loans.
If you are building a general debt repayment plan, a debt repayment calculator is the right starting point. The conventional advice is to use the avalanche method: pay the minimum on every debt, and direct every spare dollar to the debt with the highest interest rate. For most Australians, that means credit cards (18-22%) and personal loans (9-14%) come first, then HECS last — because HECS behaves more like a slowly-indexing savings plan than a typical loan. Use our loan payoff calculator to model credit card and personal loan scenarios, and our debt payoff calculator to see how long different payoff strategies actually take on a real balance.
Where this changes: if you are on the marginal repayment system, the repayment rate increases as your income grows. A 1.5% indexation combined with a 2% effective repayment rate means you are slowly gaining ground even without voluntary payments. If you are on the old flat-rate system (pre-July 2025 debts), the analysis is different — talk to a financial counsellor before making voluntary payments.
Sources and methodology
Repayment thresholds and rates are sourced from the ATO's Repaying your study loan page. The marginal calculation uses the schedule published by the ATO for each financial year.
The years-to-payoff projection assumes a flat repayment income and a constant annual indexation rate. In reality, income tends to grow year on year (which shortens payoff) and indexation varies with the CPI/WPI relationship. Use the projection as a guide, not a guarantee.
See the HECS-HELP repayment guide for the full explainer, including the history of indexation and the 20% debt reduction that was applied automatically in 2024.