Calculate HECS repayments using ATO FY2026-27 repayment thresholds.
Calculate HECS repayments using ATO FY2026-27 repayment thresholds. This tool gives a general estimate to help with everyday planning — for anything with real financial consequences, it's worth confirming the numbers with a professional.
The HECS-HELP calculator estimates how much of your student loan you will repay in a given year based on your income, and how long it will take to pay off your total HECS-HELP debt. In Australia, HECS-HELP repayments are income-contingent — you only repay when your income exceeds the minimum repayment threshold, and repayments are made automatically through the tax system.
HECS-HELP debt is indexed each year on 1 June to reflect changes in the Consumer Price Index (CPI). This means your debt can increase over time if your compulsory repayments do not keep pace with indexation. Voluntary repayments can be made at any time through the ATO online services in myGov and directly reduce your debt balance. Since the 1 July 2025 reform, repayments use a marginal system: 15% on repayment income above $69,528, rising to 17% above $129,717, and 10% of total repayment income above $186,050. You only pay the higher rate on the portion above each threshold, similar to income tax brackets. Unlike most debt, HECS-HELP has no interest component beyond CPI/WPI indexation, and the debt is cancelled if you pass away before full repayment.
Voluntary repayments can be worthwhile if your debt is growing faster from CPI indexation than you are repaying it compulsorily. In years of high inflation, this can happen on moderate incomes. However, since HECS carries no true interest rate, paying it down faster is generally lower priority than building an emergency fund, reducing high-interest credit card debt, or contributing to superannuation. Assess your full financial picture first.