What is the HECS-HELP repayment threshold for 2025-26?

The minimum HECS-HELP repayment threshold for 2025-26 is $54,435. If your repayment income is below this amount, you do not have to make any compulsory repayments. The repayment rate starts at 1% for incomes between $54,435 and $62,850, and increases progressively up to 10% for incomes above $159,664.

How long does it take to pay off HECS?

The time to pay off your HECS-HELP debt depends on your income and debt balance. For example, someone earning $75,000 with a $30,000 debt would repay about $2,625 per year (3.5% rate in 2025-26), taking roughly 11-12 years. Higher earners pay it off faster. The debt is also indexed annually on 1 June at the lower of CPI or the Wage Price Index, which can extend the repayment period.

Is HECS-HELP debt indexed?

Yes. HECS-HELP debt is indexed on 1 June each year based on the Consumer Price Index (CPI). This means your debt balance increases each year with inflation. In recent years, indexation rates have ranged from 0.6% to 7.1%. The government announced that from 1 June 2023, indexation will be capped at the lower of CPI or the Wage Price Index (WPI).

Can I make voluntary HECS repayments?

Yes. You can make voluntary repayments at any time through the ATO to reduce your HECS-HELP debt faster. There is no minimum amount for voluntary repayments. Note that the 5% bonus for voluntary repayments of $500 or more was discontinued from 1 January 2022, so there is no longer a financial incentive beyond reducing your debt balance and future indexation.

Does HECS come out of my pay each week?

Yes. If you have a HECS-HELP debt, your employer withholds compulsory repayments from each pay based on the ATO withholding schedule. You notify your employer of your HELP debt on your Tax File Number (TFN) declaration. The withheld amount is an estimate — your actual obligation is determined when you lodge your tax return.

HECS-HELP Repayment Calculator 2025-26

Q: How is my HECS repayment calculated?

Your HECS-HELP compulsory repayment is a percentage of your repayment income (not a percentage of your debt). Your repayment income includes taxable income, total net investment losses, reportable fringe benefits, and reportable super contributions. The ATO determines your rate each year based on income thresholds — the rate applies to your entire repayment income, not just the amount above the threshold.

Enter your income and HECS-HELP debt balance to see your compulsory repayment rate, annual and per-pay-period repayment, and estimated time to pay off your debt.

Last verified: 1 July 2025

How much HECS do I repay in 2025-26?

HECS-HELP compulsory repayments start at repayment income of $54,435. The rate steps up progressively from 1% to 10% and applies to your entire repayment income, not just the amount above the threshold. Rates max out at 10% for income above $159,664. Debt is indexed annually on 1 June at the lower of CPI or the Wage Price Index. Source: Australian Taxation Office.

Quick reference (2025-26). $60,000 → 1% = $600/yr. $75,000 → 3.5% = $2,625/yr. $90,000 → 5% = $4,500/yr. $100,000 → 5.5% = $5,500/yr. $120,000 → 7.5% = $9,000/yr. $150,000 → 9% = $13,500/yr. $200,000 → 10% = $20,000/yr. Repayment income includes salary, net investment losses, reportable fringe benefits, and reportable super.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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