HECS-HELP Repayment Calculator (2026-27)
Work out your compulsory HECS-HELP repayment under the new 2026-27 marginal system. You now pay nothing on the first $69,528 and a percentage only on the income above each threshold — not one rate on your whole income. See your annual repayment, the effective rate, how much comes out per pay, and roughly how many years until your study loan is paid off.
Last updated: 25 June 2026 Figures: official 2026-27 ATO study & training loan repayment thresholds
Your base salary excluding super.
Check MyGov for your current balance.
Reportable super contributions are added back to repayment income.
Annual compulsory HECS repayment
$2,700
≈ 3.2% effective — 15c per $1 over $69,528
Estimate only — general information, not personal financial or tax advice.
Effective rate
3.2%
Of total income
Per fortnight
$104
Withheld from pay
Years to pay off
~14
~3.2% indexation
Take-home impact
-$2,700
Reduction per year
Repayment projection (approx., 3.2% indexation applied 1 June each year)
| Year | Repayment | Indexation | Remaining |
|---|
2026-27 HECS-HELP repayment system (marginal)
| Repayment income | Repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c per $1 over $69,528 |
| $129,718 – $186,050 | $9,028 + 17c per $1 over $129,717 |
| $186,051 and over | 10% of total income |
The highlighted row shows the band your repayment income falls in.
What is HECS-HELP?
HECS-HELP is the Australian Government's interest-free study loan scheme for eligible Commonwealth-supported students at university. The Government pays the student contribution to your university up front, and you pay it back through the tax system once your income passes the minimum repayment threshold.
Today the official program name is HELP (Higher Education Loan Program), with HECS-HELP being the sub-type for Commonwealth-supported places. Most Australians still call any university debt “HECS” in conversation. The same repayment rules apply across HECS-HELP, FEE-HELP, OS-HELP, SA-HELP, VET Student Loans and the Student Start-up Loan — one combined repayment, one combined indexation event.
How HECS-HELP repayments work (the new 2026-27 system)
HECS-HELP doesn't charge interest. Instead, the balance is indexed each year on 1 June (more on that below), and you make compulsory repayments through the tax system once your income is high enough.
The big change from 2025-26 is how the repayment is worked out. Under the old rules, the ATO looked up a single percentage for your income band and applied it to every dollar you earned — so a $1 pay rise into a higher band could lift the rate on your whole income. That's gone. The new system is marginal, the same way income tax brackets work: you pay a percentage only on the income above each threshold.
There are still two ways to repay:
- Compulsory repayments — calculated by the ATO at tax time based on your repayment income. Your employer withholds extra tax during the year if you've ticked the HECS box on your TFN declaration, then the ATO trues it up after lodgement.
- Voluntary repayments — lump sums you choose to pay directly to the ATO via BPAY or through MyGov. No discount applies, but they reduce the balance that gets indexed on 1 June.
Your repayment income for 2026-27 is your taxable income plus reportable fringe benefits, reportable employer super contributions (including salary sacrifice), net investment losses and exempt foreign employment income. The calculator applies the marginal rates in the table above to that figure.
The 2026-27 repayment thresholds
For the 2026-27 financial year, repayments don't start until your repayment income passes $69,528 — up from $54,435 under the old rules. From there you pay only on the income above each threshold:
| Repayment income (2026-27) | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $67,001 – $129,717 | 15c for each $1 over $69,528 |
| $125,001 – $186,050 | $9,028 + 17c for each $1 over $129,717 |
| $179,286 and over | 10% of your total repayment income |
Source: ATO — Study and training support loans rates and repayment thresholds, 2026-27. The $9,028 in the third band is the full 15% repayment on the $58,000 between $69,528 and $129,717. Above $186,050 the system reverts to a flat 10% of your whole repayment income.
Repayment income (and why salary sacrifice doesn't reduce it)
This is the single most misunderstood part of HECS. People assume that because salary sacrifice into super reduces your taxable income, it must also reduce your HECS repayment. It doesn't — and the new marginal system doesn't change that.
The ATO calculates compulsory HELP repayments on repayment income, which is defined as:
- Taxable income (your salary after standard deductions), plus
- Reportable fringe benefits, plus
- Reportable employer super contributions (including salary sacrifice and personal deductible contributions), plus
- Net investment losses (e.g. negative gearing), plus
- Exempt foreign employment income.
Because the ATO adds reportable super contributions back in, salary sacrificing $10,000 into super doesn't lower the income your repayment is calculated on. Salary sacrifice is still a good idea for most people on tax-saving grounds — it just won't help with HECS. Tick the “I salary sacrifice into super” box on the calculator above to see this in action.
Indexation — the annual increase on 1 June
Your HELP balance is indexed once a year on 1 June. Indexation is applied to any part of the debt that has been owed for more than 11 months. The rate is the published HELP indexation rate, which from 2023 is capped at the lower of CPI or the Wage Price Index (WPI). For 2024 the indexation rate was 4.0%. For 2025 it was approximately 3.2%.
The 2023 cap was introduced after the 2023 indexation spike of 7.1% caused political pressure. The Government also retrospectively re-calculated 2023 and 2024 indexation using the new rule, refunding the difference for some borrowers.
Practical implication: paying off a chunk just before 1 June reduces the dollar amount that gets indexed. Paying it off a day later doesn't help that year.
Voluntary repayments — are they worth it?
There's no bonus or discount for voluntary repayments (the 5% bonus was scrapped in 2017). So voluntary repayments are just about reducing your balance ahead of indexation.
Honest rule of thumb:
- If you can earn more than the indexation rate elsewhere (e.g. a mortgage offset at 6%, after-tax investment returns above 4-5%), keep the money out of HECS.
- If your debt is small and within striking distance of being paid off, knocking it out can be psychologically worth it and removes the compulsory deduction from every payslip.
- Never use credit-card or high-interest debt money to pay down HECS — the maths is backwards.
- Time any voluntary repayment before 1 June so you avoid indexation on that amount.
Examples by salary
Compulsory annual repayment at different salaries (2026-27 marginal system, repayment income = gross salary, no salary sacrifice or fringe benefits):
| Gross salary | Annual repayment | Effective rate | Weekly | Fortnightly |
|---|---|---|---|---|
| $50,000 | $0 | 0% | $0 | $0 |
| $70,000 | $71 | 0.1% | $1 | $3 |
| $80,000 | $1,571 | 2.0% | $30 | $60 |
| $100,000 | $4,571 | 4.6% | $88 | $176 |
| $130,000 | $9,076 | 7.0% | $175 | $349 |
| $160,000 | $14,176 | 8.9% | $273 | $545 |
| $200,000 | $20,000 | 10.0% | $385 | $769 |
Under the marginal system a pay rise only lifts the repayment on the new dollars you earn — it no longer re-rates your entire income. The “effective rate” is your total repayment as a share of total income, which is why it stays well below the headline 15% and 17% marginal rates.
How long will it take to pay off?
The rough formula is:
Years ≈ debt ÷ (annual repayment − annual indexation)
For example, a $30,000 debt on an $85,000 salary. Your repayment income is $85,000, so the compulsory repayment is 15% of the $15,472 above $69,528 — $2,321 a year. Indexation at 3.2% on $30,000 is $960 in year one, so the net reduction is $1,361. At a flat salary the debt clears in roughly 17 years; the calculator above does the year-by-year compounding for you.
Earlier in your career your salary climbs, which lifts your repayment — you typically clear the debt faster than the flat-salary estimate suggests. The other lever is hitting it with voluntary lump sums just before 1 June.
The 2026-27 changes, now in effect
The HELP reforms the Government announced in late 2024 are now law and apply from the 2026-27 financial year:
- A one-off 20% reduction was applied to every Australian's HELP balance, calculated before the 1 June 2025 indexation. If your balance was $30,000, roughly $6,000 was wiped. Check MyGov for your current figure and use that in the calculator.
- A new marginal repayment system: the rate now applies only to the income above each threshold, not your whole income.
- The repayment-free threshold lifted to $69,528 (about 75% of the median wage), so lower earners repay nothing.
This calculator uses the 2026-27 thresholds — the marginal rules introduced in 2026-27, with the income bands indexed for the new financial year.
Frequently asked questions
How much HECS do I pay on $80,000?
On a repayment income of $80,000 for 2026-27, your repayment is $1,571 a year, or about $60 a fortnight. You pay nothing on the first $69,528 and 15c per $1 on the $10,472 above it ($10,472 × 15% = $1,571) — an effective rate of about 2.0%.
How much HECS do I pay on $100,000?
On $100,000 the repayment is $4,571 a year (around $176 per fortnight or $381 per month). That's 15c per $1 on the $30,472 above the $69,528 threshold — an effective rate of about 4.6%.
How much HECS do I pay on $120,000?
On $120,000 the repayment is $7,571 a year (around $291 per fortnight). That's 15c per $1 on the $50,472 above $69,528 — an effective rate of about 6.3%.
When does HECS start being deducted from my pay?
Tick the HECS-HELP box on your Tax File Number declaration when you start a job. Your employer then withholds extra PAYG from each pay if your annualised income looks like it'll cross the $69,528 threshold. The ATO trues it up at tax time based on your actual repayment income.
How is HECS-HELP indexed?
Your balance is indexed on 1 June each year. From 2023, indexation is capped at the lower of CPI or the Wage Price Index. 2024 indexation was 4.0%, 2025 was about 3.2%. Indexation only applies to the portion of the debt that's been owed for more than 11 months.
Does salary sacrifice reduce HECS-HELP repayments?
No. The ATO uses repayment income, which adds reportable super contributions back to your taxable income — even under the new marginal system. Salary sacrificing into super doesn't reduce your HECS repayment. See our salary sacrifice calculator for what it does do.
Is it worth making voluntary HECS repayments?
There's no discount for voluntary repayments. They reduce your balance before 1 June indexation, so the maths favours them when you can't earn more than the indexation rate elsewhere. If you've got a mortgage offset or higher-interest debt, prioritise those first.
What happens to HECS if I move overseas?
Australian residents living overseas for more than 183 days in any 12-month period must declare worldwide income to the ATO and may have to make a compulsory overseas levy repayment, using the same thresholds and rates as residents. Indexation still applies each 1 June.
Can I claim HECS-HELP as a tax deduction?
No. Neither compulsory nor voluntary HECS-HELP repayments are tax-deductible. Some self-education expenses for ongoing study can be deductible, but the repayment itself never is.
What's the difference between HECS and HELP?
HECS (1989) became HELP (Higher Education Loan Program) in 2005. The current sub-types are HECS-HELP, FEE-HELP, OS-HELP, SA-HELP and VET Student Loans. Most Australians still call any university debt “HECS”.
How does the marginal repayment system work?
Since 2025-26 the ATO charges your repayment only on the income above each threshold, instead of one rate on your whole income. You pay nothing on the first $69,528, 15c per $1 between $69,528 and $129,717, then 17c per $1 between $129,717 and $186,050. Above $186,050 it reverts to a flat 10% of your total repayment income. This replaced the old per-band system where a single rate (up to 10%) hit every dollar you earned.
How accurate is this calculator?
It uses the new 2026-27 ATO HECS-HELP marginal thresholds, verified against the ATO's published worked examples. The annual repayment figure is accurate for the repayment income you enter. The years-to-payoff figure assumes a constant repayment income, applies indexation at about 3.2% each 1 June, and ignores voluntary repayments. It's a strong estimate, not personal financial advice.
Official ATO and StudyAssist references
- Study and training support loans rates and repayment thresholds — ATO
- HECS-HELP compulsory repayments — ATO
- Study and training loan indexation rates — ATO
- StudyAssist — official government info on HELP
Related calculators
Australian Income Tax Calculator
Work out your full take-home pay for 2026-27, with or without HECS.
Salary Sacrifice Calculator
See your tax saving from sacrificing into super (it won't reduce HECS, though).
Superannuation Calculator
Project your super balance to retirement.
Pay Period Converter
Convert annual to weekly, fortnightly or monthly.
Last updated 25 June 2026. The figures on this page reflect the official 2026-27 ATO study and training loan repayment thresholds. We review them against ato.gov.au and update the page when the ATO publishes new rates.
Disclaimer: This calculator provides general information and estimates only. It is not personal financial, tax, or legal advice, and it does not take your individual circumstances into account. Your actual compulsory repayment is assessed by the ATO based on your full repayment income, deductions and other factors, and may differ from the figures shown here. While we take care to use current ATO figures, we make no guarantee as to their accuracy or completeness and accept no liability for any loss or decision arising from reliance on this tool. Always confirm your position with the ATO or a registered tax agent before making decisions. WhatsMyPay is not affiliated with, or endorsed by, the Australian Taxation Office.