HECS-HELP repayment calculator
Your compulsory HELP repayment for the year, how indexation eats into the balance, and roughly when the debt clears.
Covers 2026–27 income year · rates as at 2026-07-01
Compulsory repayment this year
Estimate$3,750.00
144 a fortnight, withheld from your pay
- Cleared in
- 8 years
- Indexation added
- $5,358.38
- Share of income
- 4.08%
| Repayment income | $92,000 |
|---|---|
| Threshold | $67,000 |
| Loan balance | $34,000 |
| Repayment | -$3,750.00 |
- Indexation of 3.2% is applied on 1 June, before that year's repayments are credited.
Repayment is marginal: only income above the $67,000 threshold is counted, so a $92,000 income is charged on $25,000 of it.
Over the life of it
How this is calculated
The repayment is marginal, not flat
Income above the $67,000 threshold is charged at 15%, and the slice above $125,000 at 17%. A calculator that applies a single percentage to your whole income overstates the repayment by thousands.
repayment = Σ (slice above threshold) × band rateIndexation lands before repayments
The balance is indexed on 1 June, and repayments made through the year are only credited after your return is assessed. That ordering is why a balance can rise in a year you paid thousands against it.
Repayment income is broader than salary
It adds reportable fringe benefits, reportable employer super contributions, net investment losses and exempt foreign income to taxable income. Sacrificing $12,000 into super cuts your income tax and leaves the $3,750 repayment untouched.
Worked example: $92,000 repayment income, $34,000 balance
| Repayment income | $92,000 |
|---|---|
| Balance | $34,000 |
| Threshold | $67,000 |
| Charged on | $25,000 |
|---|---|
| Repayment | about $3,750 |
| Per fortnight | about $144 |
At 3.2% indexation the balance grows by roughly $1,088 before that repayment is credited, so the net reduction is closer to $2,660.
What this assumes
- Repayment income equals the figure entered.
- No voluntary repayments are made.
- Indexation continues at the current rate.
- Income grows at the rate entered every year.
Where this commonly goes wrong
- Salary sacrificing into super does not reduce repayment income — reportable employer super contributions are added straight back on.
- Employer withholding is based on each pay period in isolation, so a bonus month can over-withhold and a variable income can under-withhold.
- A voluntary repayment made after 1 June misses that year’s indexation entirely; the same payment made in May avoids it.
Questions
How much is my HECS repayment?
On a $92,000 repayment income, roughly $3,750 a year — 15% of the $25,000 above the $67,000 threshold. Under the marginal system only the income above the threshold counts, not your whole salary.
Is it worth making voluntary repayments?
Only ahead of indexation. A voluntary payment before 1 June avoids indexation on that amount; the same payment in July does not. Against a 3.2% indexation rate, a mortgage at 6% is usually the better target.
Why did my balance go up despite repaying?
Indexation is applied on 1 June, but compulsory repayments withheld through the year are only credited when your return is assessed. For a few weeks each year the balance shows the indexation without the repayment.
Does salary sacrifice reduce my repayment?
No. Reportable employer super contributions are added back when calculating repayment income, so sacrificing lowers your income tax but leaves the HELP repayment where it was.
What happens if I go overseas?
The obligation follows you. Australians living abroad must report worldwide income to the ATO each year and make repayments if it exceeds the threshold, converted to Australian dollars at the ATO rate. Leaving for more than six months requires notifying them within seven days.
Does the debt affect getting a mortgage?
Yes, indirectly. Lenders treat the compulsory repayment as a committed monthly expense when assessing serviceability, so a $3,750 annual repayment reduces borrowing capacity by tens of thousands.
Related tools
Sources
General estimate based on published ATO rates for the 2026–27 income year. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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