HECS-HELP Calculator
Calculate your compulsory HECS-HELP repayment based on taxable income and outstanding loan balance. Free, privacy-first — inputs never leave your browser.
Details
Result
Annual HECS Repayment
A$2,625
Monthly (from take-home)
A$219
Years to Clear (no indexation)
10 yrs
Repayment % of Income
3.50%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How HECS-HELP repayment works
Your repayment is a percentage of your total taxable income, taken automatically through the tax system. See the ATO study and training loan repayment thresholds and rates. There\'s no minimum or maximum — just a sliding scale. Voluntary repayments are allowed but no longer receive a bonus.
Should I pay off HECS early?
Usually not. HECS indexes annually to CPI (~2-4%), far below investment returns. Keep repayments compulsory and invest any surplus. Exception: if you\'re planning to move overseas long-term, accumulated indexation can bite.
Common questions about HECS-HELP
What is HECS-HELP?+
A government loan that covers your university tuition. No interest, but the balance is indexed annually to CPI. Repayment is automatic via income tax once you earn above the threshold.
When does HECS repayment start?+
Once your taxable income exceeds $54,435 (2026-27 projected). Rate rises progressively from 1% to 10% as income increases.
How is HECS indexation calculated?+
Balances indexed on 1 June each year by the lower of CPI or WPI (Wage Price Index), following 2024 legislative changes that capped runaway CPI indexation. Indexation for June 2025 was ~3.2%; June 2026 projected ~2.8%. Indexation applies to balance at 1 June AFTER subtracting any voluntary repayments made in the preceding 11 months. Strategy: make voluntary payments BEFORE 1 June to reduce the indexation base — paying in July pushes benefit to next year.
Does compulsory repayment actually reduce my balance?+
Yes — but with a timing quirk. PAYG employer withholds an estimated HECS repayment from each pay, but the ATO only applies it to your loan balance after you lodge your tax return (usually July-October). Until then, the money sits with the ATO as credit. If you lodge late, indexation on 1 June applies to the pre-repayment balance. File early, or make voluntary repayments pre-1-June, to avoid paying indexation on amounts already withheld.
Should I make voluntary HECS repayments?+
Usually NO unless you're close to paying off the loan. HECS is the cheapest debt in Australia: no interest, only CPI/WPI indexation (~3%), no early repayment discount since 2017. Better to invest the money in super (concessional contributions, 15% tax) or index ETFs in your own name (long-term 8%-10% returns). Exception: if you have <$5k left, clear it to simplify. If planning a mortgage, HECS reduces borrowing capacity — paying down can increase loan eligibility $50k-$100k.
How do expats handle HECS debt while overseas?+
Australian residents-for-tax-purposes abroad with HECS debt must report worldwide income to the ATO annually. If income exceeds the AUD equivalent of the repayment threshold ($54,435 in 2026-27), compulsory repayment applies. Report via myGov using the Overseas Travel Notification within 7 days of departing for 6+ months. Penalty for non-lodgement: up to $1,565 per unlodged year plus interest. Balance continues indexing whether or not you're in Australia.