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Australia • Loan

HECS-HELP Repayment Calculator

Calculate your HECS-HELP loan repayments based on income. See repayment thresholds and estimated payoff timeline.

How HECS-HELP repayments work:

  • Compulsory Repayments: When your income exceeds the threshold ($54,435 for 2026–27), repayments are deducted by the ATO as part of your tax return.
  • Repayment Rate: The rate increases progressively from 1% up to 10% of your *entire* income, not just the excess portion.
  • Indexation: HELP loans do not accumulate commercial interest, but they are indexed (adjusted for inflation) every year on June 1st.

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Understanding HECS-HELP Loan Repayments

The Higher Education Contribution Scheme (HECS) and Higher Education Loan Program (HELP) provide student loans to eligible Australian students. Repayments are compulsory once your income exceeds the minimum repayment threshold.

How HECS repayments are determined

HECS repayments are calculated as a percentage of your total repayment income:

  1. Determine Repayment Income: Add taxable income, reportable fringe benefits, net investment losses, and reportable super contributions.
  2. Identify Threshold Bracket: Locate your income tier on the ATO HECS repayment table.
  3. Calculate Compulsory Payment: Apply the percentage rate of your bracket to your entire repayment income.
  4. Withholding: Employers withhold HECS amounts from wages based on your tax file number declaration.

2025/2026 HECS-HELP Repayment Thresholds

Parameter / Bracket Rate / Amount
Minimum Repayment Threshold $56,000 (0% Repayment)
Minimum Repayment Rate Tier 1.0% repayment starting at $56,001
Intermediate Repayment Rate Tier 5.0% repayment at $88,000
Maximum Repayment Rate Tier 10.0% repayment at $150,000+

Frequently Asked Questions about HECS-HELP Debt

HECS loans do not accrue interest, but they are indexed annually on June 1 to match the Consumer Price Index (CPI) or wage growth (whichever is lower).
Voluntary repayments can help clear your debt faster, but since HECS is a low-cost debt, many choose to invest excess cash elsewhere. Talk to a financial advisor about your personal situation.