Numeros
Categories Financial Calculators Health Calculators Math Calculators Date & Time Construction Engineering Physics Business Education Lifestyle Converters Generators
About

HECS-HELP Repayment Calculator

By

Enter your repayment income to calculate your 2026-27 compulsory HECS-HELP/HELP repayment.

HECS-HELP Repayment Calculator

Live
Compulsory repayment
$1,570.80
Effective rate
1.96%
Uses 2026-27 thresholds. "Repayment income" includes taxable income plus reportable fringe benefits, net investment losses, and reportable super contributions - not just your salary. Your debt is separately indexed each 1 June (2.8% for 2026).

The 2026-27 formula

No repayment below $69,528 15 cents per dollar between $69,528 and $129,717 PLUS 17 cents per dollar above $129,717 (capped at 10% of your total repayment income, whichever is lower)
Example

$80,000 repayment income: (80,000-69,528) x 15% = $1,570.80 compulsory repayment, an effective rate of 1.96%.

Step-by-step guide

  1. Calculate your repayment income - taxable income plus reportable fringe benefits, total net investment losses, reportable super contributions, and exempt foreign employment income (not just your salary).
  2. Enter that figure above and read your compulsory repayment amount.
  3. Remember this is separate from indexation - your outstanding balance also grows each 1 June regardless of repayments made during the year.

Why the marginal system is fairer than the old flat-rate one

Before the 2025-26 reform, HELP repayments used a single flat rate applied to your ENTIRE repayment income the moment you crossed the threshold - meaning someone earning just $1 over the line paid a percentage of their whole income, not just that $1. The new marginal system works like income tax brackets instead: you only pay the higher rate on the portion of income within each band. This removes the harsh "cliff" effect at the threshold and means small pay rises near a threshold no longer disproportionately increase your compulsory repayment.

Common mistakes

Using your taxable salary alone instead of full repayment income - reportable fringe benefits, salary sacrifice, and investment losses can all increase your repayment income above your headline salary.
Confusing compulsory repayment with indexation - repayments reduce your balance, while indexation (applied every 1 June) increases it separately to keep pace with inflation. Both happen independently.

Frequently asked questions

Does HECS-HELP charge interest like a normal loan?

No - HECS-HELP doesn't charge traditional interest. Instead, the balance is indexed once a year (1 June) to the lower of CPI or Wage Price Index, which keeps the loan's real value roughly stable rather than growing it like compound interest would.

What was the one-off 20% debt reduction?

Legislation passed in 2025 automatically reduced all eligible HELP debt balances (as they stood on 1 June 2025) by 20%, applied by the ATO without any application needed - a one-time reduction, not an ongoing feature.

Is my employer required to withhold extra tax for my HELP debt?

Yes - once you notify your employer of your HELP debt (usually via your TFN declaration), they withhold additional amounts throughout the year toward your expected compulsory repayment, which is then reconciled at tax time.

Related calculators

See the full list of Financial calculators, or try: