What is the HECS-HELP repayment threshold for 2026-27?

From 1 July 2025, HECS-HELP uses a marginal repayment system. The 2026-27 minimum repayment threshold is $69,528 — below this, no compulsory repayment is required. From $69,529 to $129,717 you repay 15% of income above $69,528. From $129,718 to $186,050 you repay $9,028 plus 17% of income above $129,717. From $186,051 you repay 10% of your total repayment income.

How is my HECS repayment calculated?

Your HECS-HELP compulsory repayment is a percentage of your repayment income (not a percentage of your debt). Your repayment income includes taxable income, total net investment losses, reportable fringe benefits, and reportable super contributions. The ATO determines your rate each year based on income thresholds — the rate applies to your entire repayment income, not just the amount above the threshold.

How long does it take to pay off HECS?

The time to pay off your HECS-HELP debt depends on your income and debt balance. For example, someone earning $85,000 with a $30,000 debt would repay about $2,321 per year (15c per dollar over the $69,528 threshold), taking roughly 13-14 years. Higher earners pay it off faster. The debt is also indexed annually to CPI on 1 June, which can extend the repayment period.

Is HECS-HELP debt indexed?

Yes. HECS-HELP debt is indexed on 1 June each year based on the Consumer Price Index (CPI). This means your debt balance increases each year with inflation. In recent years, indexation rates have ranged from 0.6% to 7.1%. The government announced that from 1 June 2023, indexation will be capped at the lower of CPI or the Wage Price Index (WPI).

Can I make voluntary HECS repayments?

Yes. You can make voluntary repayments at any time through the ATO to reduce your HECS-HELP debt faster. There is no minimum amount for voluntary repayments. Note that the 5% bonus for voluntary repayments of $500 or more was discontinued from 1 January 2022, so there is no longer a financial incentive beyond reducing your debt balance and future indexation.

Does HECS come out of my pay each week?

Yes. If you have a HECS-HELP debt, your employer withholds compulsory repayments from each pay based on the ATO withholding schedule. You notify your employer of your HELP debt on your Tax File Number (TFN) declaration. The withheld amount is an estimate — your actual obligation is determined when you lodge your tax return.

HECS-HELP Repayment Calculator 2026-27

Enter your income and HECS-HELP debt balance to see your compulsory repayment rate, annual and per-pay-period repayment, and estimated time to pay off your debt.

Last verified: 2 August 2026Jump to calculator ↓

HECS-HELP 2026–27 marginal repayment thresholds — no repayment up to $69,528; 15 cents per dollar above $69,528 to $129,717; $9,028 plus 17 cents per dollar above $129,717 to $186,050; 10% of total repayment income from $186,051

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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