HECS-HELP Repayment Calculator
FY2026-27 marginal system – see your annual repayment and how long until your debt is gone.
Under the marginal system you only repay on income above each threshold: nothing below $69,528, then 15c per dollar to $129,717, then 17c per dollar to $186,050, then a flat 10% of your whole repayment income above that. Repayment income includes reportable super contributions and net investment losses, so it can be higher than your salary. Payoff simulation applies indexation each year before crediting your repayment.
This calculator and page are general information only and not financial advice. Everyone’s circumstances will vary – always do your own research and consult your own financial professionals before making decisions.
The HECS rules completely changed and most graduates still don’t know.
Since July 2025 you only repay on income above the threshold – not on your whole salary. No more cliff where a $1 payrise cost you thousands.
See your real repayment and your payoff date above.
The new system, in plain English
Under the old rules, crossing an income threshold meant a repayment percentage applied to your entire income. One dollar of extra income could genuinely cost you thousands. It was brutal and everyone hated it.
The marginal system fixed that. For 2026-27:
Nothing on income up to $69,528. Then 15 cents per dollar on income between $69,528 and $129,717. Then 17 cents per dollar up to $186,050. Above that, a flat 10% of your whole repayment income applies.
So on $90,000, your repayment is 15% of the $20,472 above the threshold – about $3,071 a year. Under the old system it would have been calculated on all $90,000.
The indexation question everyone asks
Your HECS debt is interest-free but not growth-free. Every 1 June the balance is indexed – since the 2023 reform, at the lower of CPI and wage growth, which has recently meant around 2.8%.
Here’s the part worth understanding: indexation hits your balance before your compulsory repayment is credited for the year. That’s why the payoff simulation above applies indexation first. It’s also why voluntary repayments made before 1 June punch above their weight – they shrink the balance before it gets indexed.
Should you pay HECS off early?
The honest answer: it depends, and this is where you do your own thinking.
HECS is the cheapest debt you will ever hold – indexation around 2-3% versus 6%+ on a mortgage or 20%+ on a credit card. Plenty of people reasonably choose to pay the minimum and put spare cash toward higher-interest debt or investing instead. Others hate the payslip deduction and the drag on borrowing capacity when applying for a mortgage, and clear it for those reasons.
Run the numbers with the extra voluntary field above and see what actually changes. Also worth knowing: everyone’s balance got a one-off 20% reduction in June 2025, so your debt may be smaller than you think – check it in myGov.
FAQ
Why is my repayment income higher than my salary? Repayment income adds back reportable super contributions, reportable fringe benefits and net investment losses. Salary sacrificing into super does not reduce your HECS bill.
Does HECS affect my credit score? No – it doesn’t appear on your credit file. Lenders do count the repayment when assessing your borrowing capacity though.
I’m moving overseas – does HECS follow me? Yes. If you’re overseas 183+ days you must notify the ATO and report worldwide income, with repayments applying above the threshold.
Your HECS is a footnote. Your assets are the story.
Most graduates obsess over their HECS balance while building nothing on the other side of the ledger. The debt shrinks on its own through payroll. Your asset column only grows if you build it. That’s the entire subject of The First $100K.