What is the HECS-HELP repayment threshold for 2025-26?

The minimum HECS-HELP repayment threshold for 2025-26 is $54,435. If your repayment income is below this amount, you do not have to make any compulsory repayments. The repayment rate starts at 1% for incomes between $54,435 and $62,850, and increases progressively up to 10% for incomes above $159,664.

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 $75,000 with a $30,000 debt would repay about $2,246 per year (3% rate), 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 2025-26

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: 1 July 2025

HECS-HELP Debt 20% Reduction: Who Gets It and How Much You'll Save (2025)

The Australian government announced a 20% reduction to all HECS-HELP debts. Find out who qualifies, when it applies, how much you'll save on common debt levels ($20K, $40K, $60K), and how the switch from CPI to WPI indexation protects your balance long-term.

Cost of Living Help Australia 2026: Every Government Payment and Rebate Available Now

Struggling with cost of living? Here's every payment, rebate, and relief available in 2026 — energy rebates, rent assistance, tax offsets, bulk billing, and more. Updated March 2026.

$80,000 Salary After Tax Australia 2026: Take-Home Pay, Super & HECS Breakdown

On $80K? Your take-home pay is approximately $63,488/year or $2,442/fortnight after tax. See the full breakdown including Medicare levy, HECS repayments, super contributions, and monthly figures.

AdvertisementSupports free tools

Get notified when rates change

Free alerts when minimum wage, award rates, or workplace laws are updated.

Free forever. No spam. Unsubscribe anytime.

General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

Learn more

HECS-HELP Debt 20% Reduction: Who Gets It and How Much You'll Save (2025)

University Student Casual Work Rights: Know Your Entitlements

A guide for university students working casual jobs in Australia. Covers student visa work limits (48 hrs/fortnight), minimum wage, common underpayment in hospitality and retail, tax-free threshold, and super entitlements.

Cost of Living Help Australia 2026: Every Government Payment and Rebate Available Now

Struggling with cost of living? Here's every payment, rebate, and relief available in 2026 — energy rebates, rent assistance, tax offsets, bulk billing, and more. Updated March 2026.

From the Mate Network

Detailed HECS Thresholds →

See every HECS repayment threshold and rate for 2025-26 with payoff projections.

Full Tax + HECS Breakdown →

See your total deductions including tax, Medicare, and HECS in one view.

HECS-HELP Repayment Calculator 2025-26

Related Articles

Learn more

Related Tools

From the Mate Network