Australian HECS-HELP Calculator
Work out your HECS-HELP repayments — compulsory repayment amounts, current ATO thresholds, and the projected time to repay your balance.
AU HECS-HELP Calculator
ATO marginal repayment system
Repayment Summary
2026–27Your HECS-HELP summary
A plain-English read of your compulsory repayment for the selected year under the ATO marginal system, and how your balance changes once indexation is applied on 1 June.
Projected balance over time
A year-by-year projection of the loan balance using the inputs above. Each year the model applies any one-off voluntary repayment, then indexation, then the compulsory repayment. The selected year’s thresholds are held constant for illustration; in practice the ATO indexes thresholds annually.
| Year | Opening | Indexation + | Repayment − | Closing |
|---|---|---|---|---|
| Year 1 | AUD 25,000 | +AUD 700 | −AUD 3,071 | AUD 22,629 |
| Year 2 | AUD 22,629 | +AUD 634 | −AUD 3,071 | AUD 20,192 |
| Year 3 | AUD 20,192 | +AUD 565 | −AUD 3,071 | AUD 17,687 |
| Year 4 | AUD 17,687 | +AUD 495 | −AUD 3,071 | AUD 15,111 |
| Year 5 | AUD 15,111 | +AUD 423 | −AUD 3,071 | AUD 12,463 |
| Year 6 | AUD 12,463 | +AUD 349 | −AUD 3,071 | AUD 9,742 |
| Year 7 | AUD 9,742 | +AUD 273 | −AUD 3,071 | AUD 6,943 |
| Year 8 | AUD 6,943 | +AUD 194 | −AUD 3,071 | AUD 4,067 |
| Year 9 | AUD 4,067 | +AUD 114 | −AUD 3,071 | AUD 1,110 |
| Year 10 | AUD 1,110 | +AUD 31 | −AUD 1,141 | AUD 0 |
2025–26 repayment bands
From the 2025–26 income year the ATO uses marginal rates. Your repayment is worked out only on the income within each band above the AUD 67,000 threshold. Source: ATO Repayment Thresholds and Rates ↗
| Repayment Income | Repayment on This Income | Position |
|---|---|---|
| AUD 0 – 69,528 | Nil | ✓ Passed |
| AUD 69,529 – 129,717 | 15c per AUD 1 over AUD 69,528 | ◀ Your band |
| AUD 129,718 – 186,050 | AUD 9,028 plus 17c per AUD 1 over AUD 129,717 | — |
| AUD 186,051 and over | 10% of total repayment income | — |
Indexation impact
Indexation is applied on 1 June each year to the balance unpaid for more than 11 months, at the lower of CPI or WPI. A voluntary repayment made before 1 June reduces the balance that is indexed. ATO indexation rates ↗
How HECS-HELP Repayments Work in Australia
A reference guide to the ATO's 2025–26 marginal repayment system, indexation, and the one-off 20% debt reduction — with worked examples. All figures verified against official ATO guidance.
The 2025–26 Reforms
The 2025–26 income year brought the biggest change to study and training loan repayments in a generation. Two reforms work together: a one-off 20% reduction of all eligible loan balances, and a new marginal repayment system.
The 20% reduction was applied automatically by the ATO to balances as they stood at 1 June 2025, before that year's indexation was added. From 1 July 2025, compulsory repayments are calculated only on the portion of repayment income above the AUD 67,000 minimum threshold, rather than as a flat percentage of total income. Most people repay less than under the old system, and some no longer make any compulsory repayment.
The reforms apply to all study and training support loans — HELP, HECS-HELP, VET Student Loan, Student Financial Supplement Scheme, Student Start-up Loan, and the Australian Apprenticeship Support Loan — under one set of thresholds and rates.
How Repayments Are Worked Out
The mechanics of the 2025–26 system, from what counts as income to how and when the ATO collects repayments.
Repayment Income
Repayment income is broader than salary. The ATO adds taxable income, reportable fringe benefits, total net investment loss, reportable super contributions, and exempt foreign employment income. This combined figure determines the repayment.
The Marginal System
Only income above AUD 67,000 is used for the first repayment tier. The first 15c per AUD 1 applies to income between AUD 67,001 and AUD 125,000, then 17c per AUD 1 to AUD 179,285, then 10% of total repayment income from AUD 179,286.
When Indexation Applies
On 1 June each year the ATO indexes the part of the balance unpaid for more than 11 months. Indexation is based on ABS figures over the previous two years, using the lower of CPI or WPI. The 2026 rate is 2.8%.
PAYG Withholding
If an employer is aware of a study loan, extra amounts are withheld each pay through PAYG. The actual compulsory repayment is set when the tax return is lodged, and any over- or under-withholding is reconciled in the notice of assessment.
Key Comparisons
How the new system differs from the old, what loans are covered, and how compulsory and voluntary repayments compare.
2024–25 Flat-Rate vs 2025–26 Marginal System
| Repayment Income | Old (2024–25 flat rate of total) | New (2025–26 marginal) |
|---|---|---|
| AUD 70,000 | AUD 1,750 (2.5% of total) | AUD 450 |
| AUD 80,000 | AUD 3,200 (4.0% of total) | AUD 1,950 |
| AUD 100,000 | AUD 5,500 (5.5% of total) | AUD 4,950 |
| AUD 130,000 | AUD 10,400 (8.0% of total) | AUD 9,550 |
| AUD 150,000 | AUD 13,500 (9.0% of total) | AUD 12,950 |
Loan Types Covered by the Same Thresholds
| Loan | What It Covers | Repayment Order |
|---|---|---|
| HELP / HECS-HELP | Higher education student contributions and fees | 1st |
| VSL | VET Student Loan for vocational education | 2nd |
| SFSS | Student Financial Supplement Scheme (closed to new loans) | 3rd |
| SSL / ABSTUDY SSL | Student Start-up Loan | 4th / 5th |
| AASL | Australian Apprenticeship Support Loan (formerly Trade Support Loan) | 6th |
Compulsory vs Voluntary Repayments
| Factor | Compulsory | Voluntary |
|---|---|---|
| Trigger | Repayment income above AUD 67,000 | Any time, any amount |
| How it is paid | Through the tax return / PAYG | Direct payment to the ATO |
| Effect on indexation | Applied after indexation each year | Reduces the indexed balance if made before 1 June |
| Refundable | Not applicable | No |
Worked Examples
Illustrative 2025–26 calculations using the ATO's published examples. Figures are examples only and do not reflect any individual's circumstances.
HECS-HELP Repayment Snapshot
Visual breakdown of the 2025–26 marginal system, indexation, and how repayments have changed
Source: ATO · 2025–26 income yearLoan Analysis
Indexation history, threshold history, and the 2025–26 repayment curve
Old vs New System
Compulsory repayment at sample incomes: 2024–25 vs 2025–26
What Counts as Repayment Income
Illustrative makeup — ATO worked example (Christina, AUD 73,810)
Repayment by Income
Estimated 2025–26 compulsory repayment at sample repayment incomes
| Indexation date (1 June) | Indexation rate | Basis |
|---|---|---|
| 2026 | 2.8% | Lower of CPI or WPI |
| 2025 | 3.2% | Lower of CPI or WPI |
| 2024 | 4.0% | Lower of CPI or WPI (was 4.7%) |
| 2023 | 3.2% | Lower of CPI or WPI (was 7.1%) |
| 2022 | 3.9% | CPI |
| 2021 | 0.6% | CPI |
| 2020 | 1.8% | CPI |
| 2019 | 1.8% | CPI |
| 2018 | 1.9% | CPI |
| 2017 | 1.5% | CPI |
Australian HECS-HELP News & Updates
Recent ATO, Department of Education and Treasury announcements affecting study and training loans — sourced from official government channels.
2026 Indexation Applied at 2.8%
The ATO applied indexation of 2.8% to study and training loan balances on 1 June 2026. Indexation is applied to the portion of a balance that has been unpaid for more than 11 months.
Key Changes
- Indexation rate for 2026 set at 2.8%
- Indexation is the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI)
- Applied to amounts that remained unpaid for more than 11 months as at 1 June 2026
Impact
The 2.8% rate is lower than the 3.2% applied in 2025 and the 4.0% applied in 2024.
Context
The ATO publishes the applicable indexation rate each year ahead of the 1 June indexation date.
Updated PAYG Withholding Tables for Study Loans
From 24 September 2025, the ATO updated the Study and Training Support Loans (STSL) PAYG withholding schedules so that amounts withheld from pay reflect the 2025–26 marginal repayment system.
Key Changes
- STSL withholding components updated to align with the new repayment thresholds and rates
- Employers apply the updated schedules to pay runs from the effective date
- Withholding is an estimate; the final compulsory repayment is calculated at tax assessment
Impact
Amounts withheld through the year may differ from the final compulsory repayment shown on a notice of assessment.
Context
The ATO publishes tax tables and withholding schedules, which employers use to set STSL amounts.
One-Off 20% Reduction Becomes Law
Legislation reducing the balance of study and training support loans by 20% received assent on 2 August 2025. The reduction is applied automatically by the ATO and does not require an application.
Key Changes
- A one-off 20% reduction applied to eligible study and training support loan balances
- Calculated on the balance as at 1 June 2025, before 2025 indexation was applied
- Applied automatically by the ATO; no application required
Impact
Eligible balances were reduced before indexation, lowering the amount that 2025 indexation was calculated on.
Context
The Department of Education provides details of who is eligible and how the reduction was applied.
HECS-HELP — Frequently Asked Questions
Common questions about how study and training support loans are repaid, indexed, and reduced — verified against official ATO guidance.
A compulsory repayment applies once your repayment income exceeds the minimum repayment threshold — AUD 67,000 for the 2025–26 income year. This applies even if you are still studying or undertaking an apprenticeship. The compulsory repayment is included in your income tax assessment.
ATO Compulsory repaymentsFrom the 2025–26 income year, repayments use a marginal system and are calculated only on the income above AUD 67,000:
- AUD 67,001 – 125,000: 15c per AUD 1 over AUD 67,000
- AUD 125,001 – 179,285: AUD 8,700 plus 17c per AUD 1 over AUD 125,000
- AUD 179,286 and over: 10% of total repayment income
For example, a repayment income of AUD 90,000 gives a compulsory repayment of AUD 3,450.
ATO Repayment thresholds and ratesRepayment income is not the same as taxable income. The ATO calculates it as the total of:
- Taxable income
- Reportable fringe benefits
- Total net investment loss
- Reportable super contributions
- Exempt foreign employment income
In the ATO worked example, Christina has a taxable income of AUD 50,420, which combines with the other amounts to a repayment income of AUD 73,810.
ATO Repayment thresholds and ratesOnce you advise your employer that you have a study or training support loan, they withhold an additional amount from your pay under the PAYG withholding system to cover your expected compulsory repayment. This is an estimate; the ATO works out the exact compulsory repayment after you lodge your tax return.
ATO Compulsory repaymentsAmounts withheld through the year are based on tax tables and are an estimate. Under the 2025–26 marginal system, some people may have more withheld than their final compulsory repayment. The ATO notes that any additional amounts already withheld may be refunded when you lodge your 2026 tax return, provided you have no other outstanding Commonwealth debts.
ATO Study and training loans – what’s newNo. The minimum repayment threshold is adjusted each year to reflect changes in average weekly earnings. It is AUD 67,000 for 2025–26, up from AUD 54,435 in 2024–25. The figure that applies depends on the income year being assessed.
ATO When you must repay your loanIndexation keeps the value of the loan in line with changes in the cost of living. It is not interest — no interest is charged on study and training support loans. Indexation is applied to your loan balance once a year on 1 June.
ATO Indexation ratesIndexation is applied on 1 June each year to the part of your loan balance that has been unpaid for more than 11 months. Amounts you have paid off, or that were added to the loan within the last 11 months, are not indexed in that year.
ATO Indexation ratesThe indexation rate applied on 1 June 2026 is 2.8%. This compares with 3.2% in 2025 and 4.0% in 2024.
ATO Indexation ratesIndexation is the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). This basis was introduced by legislation and backdated to 1 June 2023.
ATO Indexation ratesIndexation is applied to the balance unpaid for more than 11 months as at 1 June. A voluntary repayment that is received and processed before 1 June reduces the balance that indexation is then applied to. The ATO notes it is important to allow enough time for a payment to be processed before 1 June.
ATO Voluntary repaymentsLegislation provided a one-off 20% reduction to the balance of study and training support loans. It was calculated on the balance as at 1 June 2025 and applied before the 2025 indexation. The reduction was applied automatically by the ATO.
ATO Study and training loans – what’s newNo. The reduction was applied automatically by the ATO to eligible balances. Where a balance was already paid off and a credit resulted, the ATO worked through refunds, and in some cases — especially where repayments were made by card — a person may have needed to contact the ATO.
ATO Study and training loans – what’s newChanging the basis to the lower of CPI or WPI reduced two earlier rates: 2023 was reduced from 7.1% to 3.2%, and 2024 was reduced from 4.7% to 4.0%. The ATO calculated indexation credits and updated affected loan accounts automatically.
ATO Indexation ratesFor 2024–25 and earlier years, the compulsory repayment was a flat rate applied to total repayment income once you passed the threshold. From 2025–26, repayments are marginal — calculated only on the income above AUD 67,000. The ATO notes that most people’s compulsory repayments are lower from their 2026 tax return onwards, with no change for those earning AUD 179,286 or more.
ATO Study and training loans – what’s newYes. You can make voluntary repayments at any time and for any amount to reduce your loan balance, using a range of payment methods in Australia and overseas. Voluntary repayments are in addition to compulsory repayments and are not refundable.
ATO Voluntary repaymentsYes. If you have a study or training support loan and reside overseas for 183 days or more in any 12-month period, you must submit an overseas travel notification within 7 days of leaving and report your worldwide income. A compulsory repayment or overseas levy applies if your worldwide income exceeds the relevant threshold. The reporting deadline for an Australian income year is 31 October.
ATO Overseas obligationsYou can view your study or training support loan account through ATO online services via myGov or the ATO app. The balance shown reflects compulsory and voluntary repayments and any indexation that has been applied.
ATO Study and training support loansNo. Study and training support loan accounts are not provable under the Bankruptcy Act 1966. This means the loan continues to be repaid through the tax system as if bankruptcy had not occurred, and the balance keeps being indexed each year until it is paid.
ATO Study and training support loansImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of the compulsory repayment on a HECS-HELP (study and training support) loan, based on the inputs provided and the ATO 2025–26 marginal repayment system. From the 2025–26 income year, the compulsory repayment is calculated only on repayment income above the AUD 67,000 minimum threshold. The calculator simplifies many aspects of study and training loans and does not capture every loan type, deduction, levy, or individual circumstance.
Estimates and projections only. Any payoff timeline, indexation, or balance projection is illustrative and relies on assumptions you enter, such as future indexation rates and income growth. Repayment income is the total of taxable income, reportable fringe benefits, total net investment loss, reportable super contributions, and exempt foreign employment income — so it may differ from taxable income alone. Amounts withheld from pay through the year are estimates and may differ from the final compulsory repayment calculated on a notice of assessment.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (the ATO and the Department of Education), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Repayment thresholds, repayment rates, and the annual indexation rate are set each year and change frequently — figures shown may be out of date, and circumstances not captured by the inputs may materially affect actual obligations.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, or legal advice, and use of this calculator does not create an advisory relationship. For figures specific to your situation, refer to the ATO directly or obtain personal advice from a registered tax agent (Tax Practitioners Board) or a licensed financial adviser.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.
Official data sources
Data source: ATO — Study and training loan repayment thresholds and rates. Indexation: ATO — Indexation rates. Figures are estimates for general information; thresholds and rates are set annually and are subject to change.