HECS-HELP Calculator 2025-26
Calculate your HECS-HELP repayments with the 2025 20% debt reduction included. See how long it will take to pay off your student loan based on your income.
Calculate Your HECS Repayments
Check myGov for exact balance
Average: 2-4% per year
Capped at lower of CPI or WPI from 2025
Extra yearly payment (optional)
FY 2025-26 — New Marginal System
You only repay on income above the threshold, not your whole salary.
Example: $80,000 income → repayment is 15% × ($80k − $67k) = $1,950 (was $3,600 under old system).
2025 HECS Reforms
- ✓ 20% debt reduction applied 1 June 2025 to all balances
- ✓ New $67,000 threshold (up from $54,435)
- ✓ Marginal system replaces whole-of-income rates
- ✓ Indexation capped at lower of CPI or WPI
Don't Pay Early!
Financial advisors generally recommend not paying HECS early. The debt has no interest (only CPI indexation), doesn't affect credit score, and investing spare money typically yields higher returns.
Understanding HECS-HELP
How HECS-HELP Repayments Work
HECS-HELP is an income-contingent loan—you only repay when you earn above the threshold. Your employer withholds repayments from your salary (like tax), and any shortfall or overpayment is reconciled when you lodge your tax return.
Indexation (Not Interest)
HECS-HELP doesn't charge interest, but your debt is indexed to inflation (CPI) each year on June 1. From 2025, indexation will be capped at the lower of CPI or the Wage Price Index, which should result in lower debt growth.
2025 Changes Summary
- 20% debt reduction: All HELP debts reduced by 20% from June 2025
- Indexation cap: Future indexation capped at lower of CPI or WPI
- Backdated relief: 2023 indexation (7.1%) effectively reversed
Strategic Considerations
Because HECS-HELP only charges indexation (typically 2-4% in normal times), many financial advisors suggest:
- Don't prioritize paying off HECS early
- Invest spare money instead (likely to earn higher returns)
- The debt doesn't affect your credit score
- Repayments are automatic and manageable
However, if indexation exceeds your expected investment returns, or you simply want the psychological benefit of being debt-free, voluntary payments are an option.
Related Articles
HECS-HELP Debt Guide Australia
Everything you need to know about managing your student loan debt.
20% HELP Debt Reduction Explained
How the 2025 debt reduction works and what it means for you.
Salary Sacrifice Guide
How salary sacrificing affects your HECS repayments and tax.
Budget Planning Guide
Create a budget that accounts for HECS repayments and savings goals.