How HECS-HELP Repayments Are Calculated
HECS-HELP (and other HELP loans) let eligible students defer the cost of tertiary study, repaying the debt later through the tax system once their income rises above a minimum threshold. From 1 July 2025, repayments use a marginal system: instead of a flat percentage applied to your whole income once you cross a threshold, you only pay the relevant rate on the portion of income that falls within each band — similar to how income tax brackets work. This calculator projects your compulsory repayments, applies annual indexation to your remaining balance, and estimates how many years until the debt is repaid.
📋 2025/2026 Indicative HELP Repayment Bands
| Repayment Income | Marginal Rate |
|---|---|
| $0 – $67,000 | Nil |
| $67,000 – $125,000 | 15% of the amount over $67,000 |
| Above $125,000 | 17% of the amount over $125,000 (plus the 15% band amount) |
🔑 Key Terms Explained
Repayment Income: Your taxable income plus reportable fringe benefits, total net investment losses, exempt foreign employment income, and reportable super contributions — not just your salary.
Marginal Repayment System: The current method where each portion of your repayment income within a band is taxed at that band's rate, rather than your entire income being taxed at the rate for the band you've reached.
Indexation: An annual adjustment applied to your HELP balance each 1 June to account for inflation, using the lower of CPI or the Wage Price Index since the 2023 reform.
Compulsory Repayment: The amount automatically calculated based on your repayment income when you lodge your tax return, separate from any extra voluntary payments you choose to make.
Voluntary Repayment: An optional extra payment made directly to the ATO at any time, which reduces your debt balance immediately.
💡 Example: $75,000 Repayment Income, $25,000 HELP Debt
1. Income above the $67,000 threshold: $75,000 − $67,000 = $8,000
2. Compulsory Repayment: $8,000 × 15% = $1,200 for the year
3. Indexation is applied to the remaining balance each 1 June, partially offsetting the reduction from repayments.
4. At this rate of repayment, with modest income growth, the debt would take a number of years to clear — see the year-by-year table above for a personalised projection.
Run the calculator above with your own figures to see your personalised repayment schedule.
⚠️ Important Notes
— This projection assumes a steady rate of income growth and indexation each year — actual figures will vary, and ATO thresholds are typically updated annually.
— Repayment income can differ from your salary if you have fringe benefits, investment losses, or salary sacrifice arrangements — use your ATO-assessed figure where possible.
— This calculator does not distinguish between HECS-HELP, FEE-HELP, VET Student Loans, or other HELP debt types — they're all repaid together as one combined balance.
— For your exact current balance and repayment history, check your ATO online account via myGov.
— For official guidance, see the ATO Study and Training Support Loans page.