HECS Payoff Planner — Updated for 2026–2027
HECS Repayment Calculator and Payoff Strategy Planner
Estimate HECS repayments and compare payoff strategies side by side.
HECS-HELP details
Compulsory repayments start at $69,528 for 2026-27. Use repayment income, not just base salary.
Loan details
Enter the balance currently showing in myGov or on your ATO account.
Assumes annual indexation on 1 June after any extra repayment made before indexation.
Still studying? Debt added within the last 11 months isn't indexed at the next 1 June — enter it here so the first year's indexation isn't overstated.
Repayment strategy
Used to recalculate compulsory repayments each projected year.
Applied immediately to your current balance before future indexation.
Modelled as one extra payment before indexation each year.
Reviewed by Ashma Ghimire, ASA, CPA AustraliaLast reviewed 15 May 2026
How much HECS you repay this year — and how to clear it sooner
Nothing is owed below the 2026-27 repayment threshold of $69,528; above it, each band's rate applies only to the income within that band, except the top band, which is charged on your whole repayment income. The same rules cover every study and training support loan — HECS-HELP, FEE-HELP, VET Student Loans, SSL and other STSL accounts — so the estimate applies whichever loan type you hold. The calculator works out that compulsory repayment for the year, then projects it forward: indexation lands on 1 June (most recently 2.8%, applied 1 June 2026), extra repayments made before that date shrink the balance that gets indexed, and a pay rise moves you up the marginal bands.
For the full thresholds, rates, and indexation reference, the HECS/HELP repayment guide has the band-by-band table. To see how HECS lands in your end-of-year refund or bill, pair this tool with the tax return calculator, or back-solve the gross salary you need at a target take-home with the reverse salary calculator.
If you salary package, reportable contributions change your repayment income — the salary sacrifice calculator and the salary sacrifice guide show how the add-backs work. Weighing extra repayments against investing instead? The invest vs offset calculator runs that comparison on the non-HECS side.
Use this calculator when
- You want this year's compulsory repayment as one number, fast — annual and per fortnight.
- You are weighing a one-off lump-sum repayment before 1 June indexation.
- You want to see how a pay rise shifts your years-to-clear under the marginal-rate system.
- You salary sacrifice and need to understand how reportable contributions move your repayment income.
HECS repayments at a glance for 2026-27
| Repayment income | Annual repayment | Per fortnight (approx.) |
|---|---|---|
| $60,000 | $0 | $0 |
| $75,000 | $821 | $32 |
| $95,000 | $3,821 | $147 |
| $110,000 | $6,071 | $233 |
| $130,000 | $9,076 | $349 |
Figures come from the same 2026-27 marginal formula the calculator uses. They assume no salary-packaging add-backs and a balance larger than the repayment — the compulsory amount is also capped at your outstanding debt, so a nearly-cleared loan repays only what is left. Check the full-pay-cycle picture with the fortnightly pay calculator.
Marginal-rate compulsory repayment
We apply the selected year's marginal HECS formula to your repayment income, so each band's rate applies only to the income within that band, except the top band, which is charged on your whole repayment income.
Strategy comparison
Run your current path next to a strategy that layers in income growth, a one-off repayment, and a recurring annual extra. Years saved and indexation avoided surface as headline metrics.
Indexation modelled on 1 June
Balances index once a year on 1 June — most recently 2.8%, applied 1 June 2026. Each projected year applies indexation after any extra repayment made beforehand, matching how balance growth actually plays out.
Year-aware policy
Switch financial years and the threshold, marginal rates, and indexation assumptions refresh automatically. Your inputs stay; the policy follows the year you select.
Sources: ATO — Study and training loan repayment thresholds and rates · ATO — Study and training loans: what's new
Frequently Asked Questions
How is the compulsory HECS repayment calculated?
Compulsory HECS repayments are calculated against your repayment income, not your gross salary. From 2025-26 onwards, the ATO applies a marginal-rate formula to HECS-HELP debt: each band's rate applies only to the income within that band, except the top band, which is charged on your whole repayment income. The calculator above applies the selected financial year's formula to your repayment income to estimate the first-year compulsory repayment, then projects how that figure shifts as your income grows. At tax time the ATO works the total out from your return and reconciles it against the PAYG amounts your employer withheld during the year — the repayment is credited against your loan balance at assessment, after 1 June indexation, not gradually through the year.
What is the HECS repayment threshold for 2026-27?
For 2026-27, the HECS compulsory repayment threshold is $69,528. Below this annual repayment income, no compulsory repayment is required. Above it, the marginal-rate method applies — each band's rate applies only to the income within that band, except the top band, which is charged on your whole repayment income. The threshold lifts most years as the bands are indexed, so the same dollar income can fall on different sides of the line from one year to the next. Switch financial years in the calculator above and the threshold and rates refresh to the policy in force for that year; the full band-by-band thresholds and rates table lives in our HECS-HELP repayment guide.
How much HECS do I pay if I earn $130,000?
On a repayment income of $130,000 in 2026-27, the compulsory repayment works out to about $9,076 for the year — roughly $349 per fortnight of pay. At $95,000 it is about $3,821, and at $75,000 about $821, because each band's rate applies only to the income within that band, except the top band, which is charged on your whole repayment income. These figures come from the same 2026-27 marginal formula that powers the calculator above, and assume no salary-packaging add-backs and a debt larger than the repayment — the compulsory amount is capped at your outstanding balance, so a nearly-cleared loan repays only what remains. Enter your own repayment income to get the exact figure, including the effect of extra repayments on your balance.
What counts as repayment income, and how do I work mine out?
Repayment income is broader than just salary. It combines your taxable income with reportable fringe benefits, total net investment losses, reportable employer super contributions, and certain exempt foreign employment income. To assemble it, start from the taxable income on your notice of assessment and add back each of those amounts — for most PAYG employees with no salary packaging, the result lands close to gross salary. For salary-packaged staff in not-for-profits, hospitals, and charities, reportable fringe benefits can lift repayment income noticeably above the cash salary shown on a payslip. Use that combined figure — not base salary — in the calculator above for an accurate compulsory repayment estimate.
How does salary sacrifice affect HECS repayments?
Salary sacrifice arrangements — including to super or via a novated lease — lower your taxable income but do not necessarily lower your HECS repayment income. Reportable employer super contributions and reportable fringe benefits are added back when the ATO works out your repayment income, so the same packaging that cuts your income tax can leave your HECS repayment unchanged, or in some cases nudge it higher because of the gross-up applied to fringe benefits. If you salary sacrifice, enter your repayment income — taxable income plus the reportable add-backs — rather than your cash salary in the calculator above to see the true HECS effect.
Is it better to pay off HECS debt early?
It depends on how the indexation rate compares with the after-tax return you could earn on the same money. HECS balances are indexed on 1 June each year — the most recent confirmed indexation was 2.8% applied on 1 June 2026, and the next rate is not set until closer to the date — and an extra repayment made before 1 June reduces the balance that gets indexed, so the saving roughly equals the indexation rate applied to the amount repaid. If an offset account, term deposit, or diversified investment can beat that rate after tax, the money may work harder elsewhere. One nuance: when compulsory repayments would clear the debt within a few years anyway, an extra repayment mostly saves indexation dollars rather than years — the payoff date barely moves. The calculator above models both effects so you can compare them against the return you would otherwise expect.
Does HECS debt affect my home loan borrowing capacity?
Yes. Lenders treat your compulsory HECS repayment as a fixed monthly liability when assessing serviceability for a home loan, which lowers the maximum loan size you can be approved for. The size of the impact depends on your repayment income — higher repayment income produces a larger compulsory repayment and a larger reduction in borrowing capacity. The current marginal-rate system can ease the impact for some incomes compared with the older flat-rate model, because the first band of income above the threshold attracts a lower rate. Use the calculator above to estimate the compulsory repayment that lenders will plug into their serviceability calculations.
How does the 20% HELP debt reduction change my starting balance?
A one-off 20% reduction was applied to most HELP debt balances on 1 June 2025, before that year's indexation. The balance shown on myGov today already reflects it, so enter the current myGov figure as your starting point when planning a payoff strategy in this calculator. The reduction does not change the threshold, repayment rates, or indexation rules — it only resets your opening balance lower, which means less indexation builds up over time and your projected payoff timeline shortens.
How does fortnightly HECS withholding relate to my final repayment?
When you tell your employer you have a HELP debt, they withhold an estimated extra amount from each fortnightly or weekly pay under the PAYG study and training support loan (STSL) tables. That withholding is only an estimate. The actual compulsory repayment is worked out once, in your tax return, from your full-year repayment income — bonuses, second jobs, investment losses, and reportable fringe benefits can all push the final figure above or below what was withheld, which is why some people get an extra HECS bill at tax time despite deductions all year. The worked examples above show the annual repayment alongside its per-fortnight equivalent so you can sanity-check what is coming out of your pay.