Australia HECS-HELP Repayment Calculator 2026-26
Calculate your 2026-26 HECS-HELP repayment rate and annual amount. Payoff projection with 3.6% indexation, years to clear, and voluntary repayment analysis.
A$
= A$6,250 / month A$
Check myHECS at ATO or myGov Common incomes:
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Annual HECS Repayment
0%
Repayment Rate
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Years to Clear (est.)
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Monthly Impact
HECS-HELP Repayment Summary
2026-26 HECS Repayment Thresholds
| Income Range | Repayment Rate |
|---|
How HECS-HELP Repayment Works
Unlike a traditional loan, HECS-HELP repayments are calculated as a percentage of your total income โ not just the amount above the threshold. This means crossing into a higher repayment band increases the rate on all your income, not just the marginal amount.
Repayment Formula
Repayment = Total Income ร Repayment Rate for your income band
Indexation applied annually (CPI ~3.6% for 2026): Balance ร CPI rate
Net debt change = Indexation โ Repayment
Balance clears when cumulative repayments equal indexed balance
Indexation applied annually (CPI ~3.6% for 2026): Balance ร CPI rate
Net debt change = Indexation โ Repayment
Balance clears when cumulative repayments equal indexed balance
Example: A$75,000 income, A$30,000 balance
Income: A$75,000 โ rate: 4.0% (from threshold table)
Annual repayment: A$75,000 ร 4.0% = A$3,000/year
Monthly impact: A$250
Indexation (3.6%): A$30,000 ร 3.6% = A$1,080 added to balance
Net reduction: A$3,000 โ A$1,080 = A$1,920/year
Annual repayment: A$75,000 ร 4.0% = A$3,000/year
Monthly impact: A$250
Indexation (3.6%): A$30,000 ร 3.6% = A$1,080 added to balance
Net reduction: A$3,000 โ A$1,080 = A$1,920/year
Extended
Voluntary Repayment vs Invest the Difference
Compare clearing your HECS debt faster versus investing the extra payments at market returns
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| Year | Income | Mandatory Rep. | Extra Rep. | Indexation | Balance | Invest Instead (Portfolio) |
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Frequently Asked Questions
How does HECS-HELP repayment work?
HECS-HELP repayments are income-contingent and collected through the ATO via your tax return or PAYG withholding. You start repaying once your income reaches the minimum repayment threshold ($54,435 for 2026-26). Repayments are a percentage of your total income (not just the amount above the threshold), increasing progressively. Rates go from 1% at $54,435 up to 10% above $151,201.
What happens to my HECS-HELP debt due to indexation?
HECS-HELP debts are indexed annually on June 1 each year by the CPI (Consumer Price Index). In recent years, indexation has been high: 7.1% in 2023, 4.7% in 2024, approximately 3.6% in 2026. This means if your annual repayments are less than the indexation amount, your balance actually grows. For lower incomes just above the threshold, this can be a significant concern.
Should I make voluntary repayments on my HECS debt?
The financial case for voluntary repayments depends on the indexation rate vs your investment returns. HECS debt indexed at 3.6% CPI vs investing money at historical equity returns of 7โ10% โ investing generally wins. However, psychological peace of mind, reduced loan drag on mortgage applications, and certainty of the 3.6% "return" (by avoiding indexation) can make voluntary repayment worthwhile for some.
Does HECS-HELP debt affect my home loan borrowing capacity?
Yes. Lenders treat HECS-HELP repayments as a committed expense, reducing your assessed borrowing capacity. Even if you are not yet above the repayment threshold, some lenders factor in the potential future repayments. The higher your balance and income, the more impact on borrowing capacity. Clearing HECS before applying for a mortgage can increase your maximum loan amount.
Is there a discount for voluntary HECS repayments?
No. The 10% voluntary repayment bonus that existed before 2017 has been abolished. There is no longer any financial discount for making voluntary lump-sum repayments. The only financial incentive now is avoiding future indexation on the amount repaid early. This significantly weakens the case for voluntary overpayment compared to the pre-2017 era.