HECS-HELP Calculator Australia — Free 2026
Estimate your HECS-HELP student loan repayments under the new 2025-26 marginal rate system. Enter your income and debt balance to see annual repayments, months to repay, and total indexation cost.
How It Works
- Enter your HELP debt balance and income
- Set salary growth and indexation rate
- Review your repayment projection
Understanding HECS-HELP Repayments in Australia
HECS-HELP is an Australian Government loan program that allows eligible students at Commonwealth-supported places to defer their student contribution fee. Rather than paying tuition upfront, the debt is recorded by the Australian Taxation Office (ATO) and repaid gradually through the tax system once your income exceeds the minimum repayment threshold.
Unlike a commercial loan, HECS-HELP does not charge interest. Instead, your debt is indexed to the Consumer Price Index (CPI) on 1 June each year, maintaining its real value. Repayments are compulsory once you earn above the threshold and are collected automatically through your tax return or pay-as-you-go (PAYG) withholding.
The New Marginal Repayment System (2025-26)
From the 2025-26 income year, Australia introduced a fairer marginal repayment system for HECS-HELP debt. Previously, once your income crossed a threshold, the applicable repayment rate was applied to your entire income — meaning a small pay rise could trigger a large jump in repayments. Under the new system, rates apply only to income within each bracket, just like income tax brackets. This ensures that earning $1 more never costs you more than $1 in extra repayments.
| Annual Income Band | Rate on Band |
|---|---|
| Below $67,000 | Nil |
| $67,000 – $74,999 | 1% |
| $75,000 – $79,999 | 2% |
| $80,000 – $84,999 | 2.5% |
| $85,000 – $89,999 | 3% |
| $90,000 – $94,999 | 3.5% |
| $95,000 – $99,999 | 4% |
| $100,000 – $104,999 | 4.5% |
| $105,000 – $109,999 | 5% |
| $110,000 – $114,999 | 5.5% |
| $115,000 – $119,999 | 6% |
| $120,000 – $124,999 | 6.5% |
| $125,000 – $129,999 | 7% |
| $130,000 – $134,999 | 7.5% |
| $135,000 – $139,999 | 8% |
| $140,000 – $144,999 | 8.5% |
| $145,000 – $149,999 | 9% |
| $150,000 and above | 9.5% |
The 20% Debt Reduction (June 2025)
In a landmark policy change, the Australian Government applied a one-off 20% reduction to all outstanding HECS-HELP (and other HELP scheme) debts from June 2025. This was automatically applied to all eligible balances — no application was needed. For a graduate with $40,000 in debt, this meant an immediate $8,000 reduction. If you are entering a balance into this calculator, make sure you use your current balance after this reduction has been applied. You can check your balance via MyGov linked to the ATO.
Indexation: How Debt Grows Over Time
On 1 June each year, your remaining HELP debt is increased by the CPI rate published by the ATO. In 2023 this was 7.1%, and in 2024 it was 4.7% — significantly higher than historical norms due to post-pandemic inflation. From 2023 onwards, indexation is capped at the lower of CPI or the Wage Price Index (WPI), providing some protection for borrowers. In lower-inflation environments, indexation is typically 2–3% per year. This calculator uses 2.5% as a conservative default; you can adjust it to model different inflation scenarios.
Voluntary Repayments
You can make voluntary repayments of any amount at any time via the ATO online services through MyGov. These reduce your balance immediately, which lowers future indexation costs. Note that the 10% voluntary repayment bonus that previously existed was abolished in 2017 — there is no additional discount for paying early. Voluntary repayments make the most financial sense when CPI indexation is high and you have savings earning less than the indexation rate.
To understand how your HECS-HELP repayment fits into your overall take-home pay, combine this calculator with our Australian Salary Calculator and Australian Income Tax Calculator.
Frequently Asked Questions
HECS-HELP is an Australian Government loan program that covers your student contribution (HECS) at Commonwealth-supported places. You don't pay anything upfront — the debt is managed by the ATO and repaid through the tax system once your income exceeds the minimum threshold, which is $67,000 for 2025-26.
From 2025-26, HECS-HELP repayments are calculated on a marginal basis, similar to income tax. You only pay on the portion of income that falls within each bracket — not on your entire income. For example, if you earn $76,000, you pay 1% on the $8,000 between $67K and $75K, then 2% on the $1,000 between $75K and $76K. This is fairer than the old system, which applied a flat rate to all income once a threshold was crossed.
HECS-HELP debts are indexed to the Consumer Price Index (CPI) on 1 June each year. This means your debt grows with inflation even while you are making repayments. In recent years indexation has been high — 7.1% in 2023 and 4.7% in 2024. The government capped indexation at the lower of CPI or Wage Price Index from 2023 onwards following community concern about rising debt balances.
Yes. As part of the 2025 Federal Budget, the Australian Government applied a one-off 20% reduction to all outstanding HECS-HELP (and other HELP) debts from June 2025. This was a significant policy change that reduced the average balance by tens of thousands of dollars for many graduates. The reduction was applied automatically — no application was required.
Voluntary repayments reduce your HELP balance immediately and can save on future indexation costs. However, unlike a commercial loan, there is no interest charged beyond CPI indexation. If your income is below the threshold, no compulsory repayments are required. Voluntary repayments are worth considering if you have surplus savings and your debt is growing faster than your returns elsewhere, particularly in high-CPI years. There is no bonus discount for voluntary repayments as of 2025-26.
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