HECS-HELP Repayment Calculator

Last updated: May 2026. Reflects current Australian metrics.

Calculate your mandatory ATO university debt repayments for the 2026-2026 financial year. See how your HECS-HELP debt affects your weekly take-home pay.

Income & Debt Details

$
Your gross taxable income before tax.
$

Pay Frequency

Mandatory Repayment

per week

$0
ATO Repayment Rate Applied 0.0%
Total Repayment for Year $0
Remaining HECS Balance $0

How HECS-HELP Works in Australia

The Higher Education Loan Program (HELP), commonly known as HECS, is an Australian Government loan that allows students to defer the cost of their university tuition. You only start repaying this loan once your income reaches a certain threshold.

The Repayment Income Threshold (2026-2026)

For the 2026-2026 financial year, you must start making mandatory repayments if your 'repayment income' is above $54,435. If you earn less than this, you do not pay anything.

Your repayment is calculated as a percentage of your total income. As your income goes up, the percentage rate you have to pay also goes up. For example, if you earn $60,000, you pay 1.0% of your income. If you earn $100,000, you pay 6.0%.

It is NOT a marginal tax bracket system!

This is a critical point that many Australians misunderstand. Standard income tax is marginal (you only pay the higher rate on the dollars earned above the threshold). HECS is absolute. If you hit the 6.0% threshold, you pay 6.0% on your entire income, from the very first dollar. This means a $1 pay rise that pushes you into a higher HECS bracket can actually reduce your take-home pay for the year.

Does HECS charge interest?

No, HECS-HELP loans do not charge an interest rate. However, the balance is indexed every year on June 1st to keep up with inflation. The Australian Government recently changed the law so that indexation will be set at either the Consumer Price Index (CPI) or the Wage Price Index (WPI), whichever is lower.

Should I pay it off early?

Generally, financial advisors suggest that unless you are trying to maximize your borrowing capacity for a home loan (as banks treat HECS as a massive reduction in your usable income), it is usually better mathematically to put your spare cash into a high-interest savings account, offset account, or the stock market, rather than making voluntary HECS repayments, because HECS is essentially the "cheapest" debt you will ever have.

Related Calculators

HECS Repayment Education Loan University Savings Goal

Learn about HECS-HELP and indexation at the Australian Taxation Office (ATO).

10 Frequently Asked Questions

1. What is HECS-HELP?
The Higher Education Loan Program helps eligible students pay their tuition fees. Repayments are processed through the tax system.
2. Is interest charged on HECS?
No, HECS debt does not accrue interest. Instead, it is indexed annually to inflation (CPI) to maintain its real value.
3. When do I start repaying HECS?
You only start making compulsory repayments when your income exceeds the minimum repayment threshold for that financial year.
4. How is HECS indexed?
On June 1st each year, the outstanding balance is multiplied by the indexation rate. Recently, the government changed this to the lower of CPI or WPI.
5. Does HECS affect getting a home loan?
Yes, banks treat your compulsory HECS repayment as an ongoing expense, which reduces your borrowing power.
6. Can I make voluntary repayments?
Yes, you can make voluntary payments to the ATO via BPAY at any time to reduce your balance before indexation occurs.
7. Are there bonuses for voluntary payments?
Historically there were, but the government currently does not offer a discount or bonus for voluntary HECS-HELP repayments.
8. What happens if I move overseas?
If you move overseas, you are still required to declare your worldwide income to the ATO and make HECS repayments if you earn above the threshold.
9. What is a FEE-HELP loan?
Similar to HECS-HELP but for full-fee paying places. FEE-HELP sometimes incurs a 20% loan fee for undergraduate courses.
10. How is the repayment rate determined?
The repayment rate is a percentage of your Repayment Income, starting at 1% and scaling up as you earn more.