Calculate HECS repayments using ATO FY2024-25 repayment thresholds.
If you studied at university in Australia, there's a good chance you have a HECS-HELP debt sitting in the background — and unlike most debts, it doesn't have a set repayment schedule. Instead, compulsory repayments kick in automatically through the tax system once your income crosses the repayment threshold, and the amount you repay scales with how much you earn.
This calculator estimates your annual HECS repayment based on your income, shows how much of your debt you'll clear in a given year, and gives you a rough idea of how many years it will take to pay off the balance. It uses the current ATO repayment thresholds and rates.
One thing that trips people up: HECS-HELP debt is indexed to CPI each year on 1 June. In years with high inflation, the debt can grow faster than your repayments reduce it — which is exactly what many graduates experienced in 2022-23 when CPI hit 7.1%. This calculator lets you factor in an indexation rate so you can see the realistic payoff timeline.
Compulsory repayments start when your income exceeds the minimum repayment threshold, which is updated each year. For 2024-25, repayments kick in at $54,435. Below that income, you make no compulsory repayment regardless of how large your debt is.
Yes. You can make voluntary repayments directly to the ATO at any time via your myGov account. There's no penalty for paying early, though the government removed the 5% voluntary repayment bonus that used to exist.
It can. Lenders include your HECS repayment in their serviceability calculations because it reduces your take-home pay. The higher your debt and income, the larger the compulsory repayment and the more it affects your borrowing capacity.
Since 2017, Australian citizens and permanent residents living overseas are still required to make HECS repayments based on their worldwide income above the threshold. This is self-assessed through an overseas levy.
It depends. HECS is interest-free (only indexed to CPI) and automatically repaid, so in low-inflation environments it's often better to invest surplus money elsewhere. In high-inflation years like 2022-23, voluntary repayments before 1 June can make sense to avoid a large indexation hit.