The HECS-HELP scheme is Australia's government student loan program, allowing eligible students to defer their tuition fees until their income reaches a repayment threshold. From the 2025-26 financial year, repayments use a new marginal rate system — each dollar above the threshold is repaid at the rate for that bracket, preventing the sudden jumps that occurred under the old tiered system. Use this calculator to estimate your annual repayment, see your effective rate, and project how long it will take to pay off your HECS-HELP debt.
2025-26 Marginal Rate System
From 2025-26, HECS-HELP uses marginal rates instead of the old tiered system. Each dollar is repaid at the rate for the bracket it falls in, similar to income tax. Indexation is capped at the lower of CPI or WPI (reformed in 2023). Verify your details with the ATO.
HECS-HELP Repayment Calculator
Enter your repayment income and HECS debt to estimate annual repayments.
Income & Debt
Taxable income + reportable fringe benefits + net rental losses
Projection Settings
Lower of CPI or WPI (typically 3-4%)
Expected annual income increase
Annual HECS-HELP Repayment
$0
Marginal Repayment Breakdown
Year-by-Year Projection
| Year | Income | Rate | Repayment | Indexation | Balance |
|---|
Projection assumes constant indexation and salary growth rates. Indexation is applied on 1 June each year before repayments are deducted. Actual rates may vary.
2025-26 HECS-HELP Repayment Thresholds (Marginal Rates)
| Income Bracket | Marginal Rate |
|---|---|
| Below $54,435 | 0% |
| $54,435 - $62,850 | 1% |
| $62,851 - $66,620 | 2% |
| $66,621 - $70,618 | 2.5% |
| $70,619 - $74,855 | 3% |
| $74,856 - $79,346 | 3.5% |
| $79,347 - $84,107 | 4% |
| $84,108 - $89,154 | 4.5% |
| $89,155 - $94,503 | 5% |
| $94,504 - $100,174 | 5.5% |
| $100,175 - $106,185 | 6% |
| $106,186 - $112,556 | 6.5% |
| $112,557 - $119,309 | 7% |
| $119,310 - $126,467 | 7.5% |
| $126,468 - $134,056 | 8% |
| $134,057 - $142,100 | 8.5% |
| $142,101 - $150,626 | 9% |
| $150,627 - $159,663 | 9.5% |
| $159,664 and above | 10% |
Under the marginal system, each dollar within a bracket is repaid at that bracket's rate. For example, if you earn $60,000, you pay 0% on the first $54,434 and 1% on the remaining $5,566.
How to Use the HECS-HELP Repayment Calculator
The HECS-HELP scheme is Australia's income-contingent student loan system, where graduates repay their tuition debt through the tax system once their income reaches a minimum threshold. From the 2025-26 financial year, the Australian Government switched from a tiered system — where crossing a threshold applied a higher rate to your entire income — to a marginal rate system that works like income tax brackets. This calculator helps you understand exactly how much you will repay and how long it will take to clear your debt.
Step 1: Enter Your Income and Debt
Start by entering your annual repayment income. This is not just your salary — it includes your taxable income plus any net rental losses, reportable fringe benefits, and exempt foreign employment income. You can find this figure on your ATO notice of assessment. Then enter your current HECS-HELP balance, which you can check via your myGov account linked to the ATO.
Step 2: Set Projection Parameters
The indexation rate determines how much your debt grows each year on 1 June. Since the 2023 reform, indexation is capped at the lower of CPI or the Wage Price Index, typically around 3-4%. The salary growth rate estimates how your income will increase over time, which affects the repayment brackets you fall into in future years. Adjust both settings to model different scenarios.
Step 3: Review Your Repayment Breakdown
After clicking "Calculate Repayment," you will see your annual repayment amount, the top marginal rate that applies to your income, and your effective repayment rate (total repayment as a percentage of total income). The marginal breakdown shows exactly how much of your income falls in each bracket and the repayment for each portion, so you can understand the calculation step by step.
Step 4: Check the Year-by-Year Projection
The amortization table projects your debt balance year by year, accounting for both indexation (which increases your balance) and repayments (which reduce it). Each row shows your projected income for that year, the applicable marginal rate, the repayment amount, the indexation added, and the remaining balance. This helps you see when your HECS-HELP debt will be fully repaid and how much total indexation you will pay over the life of the loan.
Understanding the Marginal System
Under the old tiered system, earning one extra dollar could push your entire income into a higher repayment bracket, creating a situation where a small pay rise actually left you worse off after HECS repayments. The marginal system eliminates this problem. Each dollar is only taxed at the rate for the bracket it falls in. For example, someone earning $60,000 pays 0% on the first $54,434, and 1% on the remaining $5,566 — a total repayment of just $55.66. Under the old system, the same person would have paid a flat 1% on the entire $60,000 ($600), which is over ten times more.
FAQ
Is this HECS-HELP calculator free to use?
Yes, this calculator is completely free with no signup or ads. All calculations run locally in your browser — no personal financial data is ever sent to any server.
Is my financial data safe when using this calculator?
Absolutely. Everything runs entirely in your browser using JavaScript. No income, debt balance, or personal data is ever transmitted or stored. You can disconnect from the internet and the calculator will still work.
How does the new marginal HECS repayment system work?
From 2025-26, HECS-HELP repayments use a marginal rate system instead of the old tiered system. Under the old system, crossing a threshold applied a higher rate to your entire income. Under the new system, each dollar is taxed at the rate for the bracket it falls in, similar to income tax. This means no sudden jumps in repayment amounts when your income increases slightly.
What is the minimum income for HECS repayments in 2025-26?
You do not make any HECS-HELP repayments if your repayment income is below $54,435 for the 2025-26 financial year. Once your income exceeds this threshold, you pay 1% only on the amount above $54,435, not on your entire income.
How is HECS-HELP indexation calculated?
Since 2023, HECS-HELP debts are indexed annually on 1 June at the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). This reform was introduced to prevent debts growing faster than wages. The typical indexation rate is around 3-4% per year.
What counts as repayment income for HECS-HELP?
Repayment income includes your taxable income plus any net rental losses, total reportable fringe benefits, and exempt foreign employment income. It is generally higher than your taxable income alone. Check your ATO notice of assessment for your exact repayment income figure.
Can I make voluntary HECS-HELP repayments?
Yes, you can make voluntary repayments at any time through the ATO. Since 2017, the government removed the 5% bonus for voluntary repayments, but paying extra still reduces your balance and saves on future indexation. Any amount above $500 can be claimed as a voluntary repayment.
Does this calculator account for salary growth?
Yes, the projection table includes an optional salary growth rate. Enter your expected annual salary increase and the calculator will show how rising income affects your repayment rate over time, potentially moving you into higher marginal brackets and paying off your debt faster.