HECS Repayment Calculator — Australia 2025–26
Identical tool to our main HECS repayment calculator. Enter income, get repayment amount by pay cycle using the 2025–26 thresholds.
This page uses the same calculation engine as our primary HECS repayment calculator. Both apply the official 2025–26 Australian Taxation Office thresholds.
| Repayment income | Repayment calculation |
|---|---|
| $0 – $67,000 | Nil — no compulsory repayment |
| $67,001 – $125,000 | 15c for every $1 over $67,000 |
| $125,001 – $179,285 | $8,700 + 17c for every $1 over $125,000 |
| $179,286 and above | 10% of total repayment income (whole-of-income) |
Big change from 2024-25: The new marginal system means repayment is calculated only on income above $67,000 (except at the top bracket). Under the old system, the rate applied to your entire income. Source: Australian Taxation Office — Repayment thresholds and rates 2025-26; Higher Education Legislation Amendment (20% Reduction of HELP Debts) Act 2025. Repayment income = taxable income + reportable fringe benefits + reportable super + net investment loss + exempt foreign employment income.
Need more than a number? Our 2025–26 rates reference explains how each bracket is constructed, and how HECS works end-to-end covers the full repayment lifecycle.
Pay off HECS faster — actionable tactics
Hand-picked strategies Australian graduates actually use. Each one can be implemented this financial year — no gimmicks, no affiliate links.
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01
Chuck a voluntary payment in before 1 June
This one's the big one. Indexation hits on 1 June, and it only applies to whatever is sitting on your balance that day. If you transfer, say, $5,000 in the last week of May, indexation at 3.4% never touches that $5k — so you save around $170 in one go. I did this three years running and it's the single easiest win.
Do this: Grab your PRN from myGov → ATO → Loan Accounts, then BPAY it. Do it 5 business days before 1 June — banks can be slow.
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02
Tick the HECS box on your TFN declaration
Your employer only withholds extra tax for HECS if you tell them you have a debt. I've met grads who got smacked with a $9,000 bill at tax time because they never ticked the box — their payroll had no idea. Getting it withheld from each pay is way less painful than one brutal June invoice.
Do this: Email payroll and say: "Please update my TFN declaration to indicate I have a HELP debt." Sorted next pay cycle.
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03
Add your fringe benefits and super to your income estimate
The ATO uses "repayment income" — not just your salary. It adds back reportable fringe benefits (novated lease is the big one), reportable employer super, net investment losses, and exempt foreign income. A mate of mine on a $95k salary with a $12k novated lease tipped into the 15% bracket and was furious when the letter arrived.
Do this: Check your last payment summary, grab the RFBA number, and add it to your gross before using the calculator.
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04
Don't part-pay your HECS before applying for a home loan
This catches loads of people out. Banks only drop HECS from their serviceability calc when your balance is exactly zero. If you have $25k and pay $20k of it, the bank still assumes the full monthly commitment. Total waste unless you're clearing it completely — and if your balance is under $7–8k you might as well, since clearing it unlocks roughly $160 of borrowing capacity for every $1 of monthly HECS you remove.
Do this: Balance under $8k and you're six months from a home loan? Clear it. Over $15k? Don't touch it — keep the cash for your deposit.
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05
If your investments beat indexation after tax, invest instead
Indexation is capped at the lower of CPI or WPI — roughly 2.5–3.4% heading into 2026. A basic ASX/global ETF returning 7% pre-tax works out at about 4.8% after tax in the 32.5% bracket. Over 10 years, investing $20,000 instead of repaying it early can leave you $4,000–$7,000 ahead. HECS has no interest, just indexation — it's one of the cheapest "debts" you'll ever have.
Do this: Run the numbers yourself in the Voluntary vs Invest calculator using your actual marginal tax rate before you decide.
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06
Don't expect salary sacrifice to shrink your HECS bill
This is the most common bit of dodgy advice I hear. Yes, salary sacrificed super lowers your taxable income — but the ATO adds it back as "reportable super" when working out HECS. Novated leases reduce taxable income too, but they also create a Reportable Fringe Benefit (RFBA) that adds back in. Net effect: salary sacrifice is basically HECS-neutral. Use it for its super-tax benefits, not to dodge HECS.
Do this: If someone tells you salary sacrifice will drop your HECS, ask them to show you the ATO page on repayment income. It won't.
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07
Moving overseas? Tell the ATO within 7 days
Your HECS debt doesn't stay in Australia when you do. If you leave and earn above the AUD threshold ($67,000 for FY2025-26) you're still liable — and you have to lodge a worldwide income declaration each year. Skip it and you cop penalties plus interest. I've seen Aussies come back from London with five years of missed declarations and a $12k penalty bill on top.
Do this: Before you fly, log into myGov → ATO → Update contact details → tell them you're moving. Lodge worldwide income by 31 October each year.
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08
Redirect your tax refund or bonus to HECS in May
Lump-sum cash — your July tax refund, an annual bonus, EOFY commission — is the stuff that vanishes on random takeaway and holidays. If you route half of any big deposit straight to HECS in April or May, you wipe out a year of indexation on that chunk and you never miss the money because it was never in your everyday account.
Do this: Set a rule with yourself: any single deposit over $2,000 in April or May gets split 50/50 — half to HECS via BPAY, half to your offset. Automate it if you can.
Frequently Asked Questions
Is this the same as the HECS Debt Calculator?
What rate applies to me?
Everything about HECS-HELP — calculators, tips, tactics, rules
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