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

The minimum repayment threshold for 2025-26 is AUD $54,435. If your HELP repayment income (HRI) is below this amount, you make no compulsory repayments. Above this threshold, rates range from 1% to 10% of your total repayment income. The threshold is adjusted annually to reflect wage growth. For context, in 2020-21 the threshold was $46,620, so it has increased by about 17% over five years. Your HRI includes taxable income plus net investment losses, reportable fringe benefits, and reportable super contributions.

How is HECS-HELP repayment income calculated?

Your HELP repayment income (HRI) is broader than just your salary. It equals your taxable income plus any net investment losses (added back), reportable fringe benefits, reportable superannuation contributions, and exempt foreign employment income. For example, if your taxable income is $70,000 and you salary-sacrifice $10,000 into super (reportable), your HRI is $80,000, pushing you from a 2.5% to a 4% repayment rate. The ATO calculates your HRI automatically when you lodge your tax return.

Is HECS-HELP debt indexed for inflation?

Yes, HELP debts are indexed each year on 1 June. From 2023-24 onwards, indexation is capped at the lower of CPI or the Wage Price Index (WPI), following the 2023 reform triggered by CPI spiking to 7.1%. This change was backdated to 1 June 2023 and resulted in refunds for many borrowers. Historical rates show the impact: 2020-21 indexation was 0.6%, 2021-22 was 3.9%, and 2022-23 was retrospectively reduced from 7.1% to 3.2% (WPI). On a $30,000 debt, the difference between CPI and WPI-capped indexation saved about $1,170.

Can I make voluntary HECS-HELP repayments?

Yes, you can make voluntary repayments of any amount at any time through the ATO's online services via myGov. The government previously offered a 5% discount on voluntary payments over $500, but this discount was removed from 1 January 2017. Since HELP debt carries no interest (only CPI/WPI-capped indexation, typically 2-4%), most financial advisors recommend investing extra money rather than accelerating HELP repayments, as investment returns generally exceed the indexation rate. The one strategic exception: making a voluntary payment just before 1 June reduces the balance before annual indexation is applied.

What happens to my HECS-HELP debt if I move overseas?

Since 1 July 2017, Australians living overseas with HELP debts must lodge an overseas income assessment with the ATO annually. Your worldwide income is assessed against the same repayment thresholds used for Australian residents. If your overseas income exceeds AUD $54,435 (2025-26 threshold), you must make compulsory repayments. Failure to lodge can result in penalties. You can report your overseas income through the ATO's online services. The debt continues to be indexed annually regardless of your location.

HECS-HELP Repayment Calculator

Estimate your annual and monthly HELP debt repayments based on 2025-26 thresholds.

Annual Income (A$)

HELP Debt Balance (A$)

2025-26 Repayment Rates

Below $54,4350%

$54,435 - $62,8501%

$62,851 - $66,6202%

$66,621 - $70,6182.5%

$70,619 - $74,8553%

$74,856 - $79,3463.5%

$79,347 - $84,1074%

$84,108 - $89,1544.5%

$89,155 - $94,5035%

$94,504 - $100,1745.5%

$100,175 - $106,1856%

$106,186 - $112,5566.5%

$112,557 - $119,3097%

$119,310 - $126,4687.5%

$126,469 - $134,0568%

$134,057 - $142,1008.5%

$142,101 - $150,6269%

$150,627 - $151,2009.5%

Above $151,20110%

Annual Repayment

Monthly Equivalent

Repayment Rate

Estimated Years to Repay

How HECS-HELP Repayments Work

HECS-HELP is the Australian Government's income-contingent loan scheme that helps eligible domestic students pay their university tuition fees. Under this system, the Commonwealth pays your tuition directly to your university, and you repay the debt through the tax system once your income exceeds the minimum repayment threshold. According to the Australian Taxation Office (ATO), approximately 3 million Australians currently hold HELP debts totaling over AUD $78 billion. The average HELP debt upon graduation is approximately AUD $26,000, though this varies significantly by field of study.

Unlike private student loans, HECS-HELP has no interest rate -- debts are indexed to maintain their real value rather than generating profit for the lender. Repayments are income-contingent, meaning you only pay when you can afford to, and the debt does not affect your credit score. For other Australian financial planning, see our Superannuation Calculator and Australian Income Tax Calculator.

The HECS-HELP Repayment Formula

Compulsory HECS-HELP repayments are calculated using a progressive bracket system defined by the ATO:

Annual Repayment = HELP Repayment Income (HRI) x Applicable Rate

The HRI is your taxable income plus net investment losses, reportable fringe benefits, reportable super contributions, and exempt foreign employment income. The Applicable Rate ranges from 0% (below threshold) to 10% (above AUD $151,201). Critically, the rate applies to your entire income, not just the amount above the threshold.

Worked example: An Australian graduate earning AUD $75,000 falls in the 3.5% bracket. Annual repayment = $75,000 x 0.035 = AUD $2,625 per year (about $219/month). With a $30,000 HELP debt and no indexation, it would take approximately 12 years to repay at this income level.

Key Terms You Should Know

HELP Repayment Income (HRI): A broader measure than taxable income that includes net investment losses, reportable fringe benefits, reportable super contributions, and exempt foreign employment income. The ATO uses HRI to determine your repayment rate.
Repayment Threshold: The minimum HRI at which compulsory repayments begin. For 2025-26, this is AUD $54,435. Below this amount, you make no compulsory repayments.
Indexation: Annual adjustment to the outstanding balance applied on 1 June. From 2023-24, capped at the lower of CPI or the Wage Price Index (WPI) to prevent runaway debt growth.
Commonwealth Supported Place (CSP): A university place where the government subsidizes part of your tuition. The student contribution (paid via HECS-HELP) is typically 30-60% of the full course cost.
PAYG Withholding: Your employer automatically withholds extra tax to cover your HECS-HELP repayment. You must notify your employer of your HELP debt so they apply the correct withholding rate.

2025-26 HECS-HELP Repayment Rates

HRI Range (AUD)	Rate	Annual Repayment	Monthly Equivalent
Below $54,435	0%	$0	$0
$54,435 - $62,850	1%	$544 - $629	$45 - $52
$62,851 - $70,618	2 - 2.5%	$1,257 - $1,765	$105 - $147
$70,619 - $89,154	3 - 4.5%	$2,119 - $4,012	$177 - $334
$89,155 - $119,309	5 - 7%	$4,458 - $8,352	$371 - $696
$119,310 - $151,200	7.5 - 9.5%	$8,948 - $14,364	$746 - $1,197
Above $151,201	10%	$15,120+	$1,260+

Practical HECS-HELP Repayment Examples

Example 1 -- Graduate Nurse: A registered nurse earning AUD $65,000 with a $28,000 HELP debt. At the 2% rate, annual repayment = $1,300. Without indexation, repayment takes about 22 years. With typical 3% indexation, it takes longer as the balance grows. Salary increases over time will push the nurse into higher brackets, accelerating repayment.

Example 2 -- Engineer: A mining engineer earning AUD $110,000 with a $35,000 HELP debt. At the 6% rate, annual repayment = $6,600. The debt is cleared in about 5-6 years. This illustrates how higher-earning graduates repay much faster. See our Student Loan Calculator for comparison with other loan types.

Example 3 -- Teacher Moving Abroad: An Australian teacher earning AUD $75,000 who moves overseas still has a HELP debt obligation. Since 2017, Australians living abroad with HELP debts must lodge with the ATO and make repayments based on their worldwide income if it exceeds the threshold. The 3.5% rate on $75,000 means $2,625 in annual repayments to the ATO. Use our Division 296 Calculator for other Australian tax scenarios.

Tips for Managing Your HECS-HELP Debt

Notify your employer: If you have a HELP debt, you must tick the "HELP/HECS debt" box on your Tax File Number Declaration (TFN declaration). Otherwise, your employer will not withhold enough tax, and you will face a large bill at tax time.
Understand the threshold cliff: Repayment rates apply to your entire income, not just the amount above the threshold. Earning $54,434 means zero repayment, but earning $54,436 triggers a 1% rate on the full amount ($544). Be aware of this when negotiating salary or considering overtime near threshold boundaries.
Voluntary repayments may not be worthwhile: Since HELP debt carries no interest (only indexation), and indexation is now capped at WPI, the effective rate is very low. Most financial advisors recommend investing extra money rather than making voluntary repayments, as investment returns typically exceed the indexation rate.
Check your HELP balance regularly: Log into myGov and link to the ATO to view your current balance, indexation history, and repayment history. Balances update after each tax return is processed.
Plan for the 1 June indexation date: If you can make a voluntary payment before 1 June, it reduces the balance before indexation is applied, saving you money. This is the one situation where voluntary repayment may be strategically beneficial.

HECS-HELP Indexation History and Policy Changes

The indexation policy changed significantly following the 2023 crisis. According to the Australian Department of Education, when CPI spiked to 7.1% in the 2022-23 year, HELP debts grew by the same amount, adding thousands of dollars to balances overnight. In response, the government introduced legislation capping indexation at the lower of CPI or WPI, backdated to 1 June 2023. This was the most significant reform to the HELP scheme since its introduction in 1989.

Historical indexation rates: 2020-21: 0.6%, 2021-22: 3.9%, 2022-23: 7.1% (subsequently reduced to 3.2% WPI retrospectively), 2023-24: 4.7% (capped at WPI). For a $30,000 debt, the difference between 7.1% CPI and 3.2% WPI indexation was approximately $1,170 -- a meaningful saving for graduates.

Disclaimer: This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Actual repayment amounts are determined by the ATO based on your tax return. Always consult a qualified tax professional for decisions specific to your situation.