About the HECS-HELP Repayment Calculator
For Australian university graduates, understanding HECS-HELP repayment obligations is crucial for tax planning and budgeting. The HECS-HELP Repayment Calculator Australia helps you estimate your compulsory repayment amount based on your income, ensuring you are prepared when tax time arrives. The ATO manages the HELP repayment system and adjusts minimum repayment thresholds annually. This tool is designed for graduates, professionals, and small business owners who have a Higher Education Loan Program debt and want to know exactly how much they will need to repay each year based on their income.
What is the HECS-HELP Repayment Calculator?
The HECS-HELP program is an Australian government loan scheme that helps students pay their university fees. Repayments are made through the tax system once your income exceeds the minimum repayment threshold. For 2025-26, the threshold is $67,000, and from this financial year repayments use a **marginal** system — you repay a percentage only of the income you earn *above* $67,000, not a flat percentage of your whole income. The marginal rates are 15% on income between $67,001 and $125,000, 17% between $125,001 and $179,285, and 10% on income of $179,286 and above. The loan is indexed annually on June 1 based on the Consumer Price Index, which means your debt can grow even if you are not making repayments. This calculator takes your current HELP debt, your estimated annual income, and calculates your compulsory repayment amount for the financial year, giving you clarity on what to expect at tax time.
How to Use This Calculator
- 1Enter your current HELP debt: Input the total outstanding balance of your HECS-HELP loan as shown on your ATO notice of assessment.
- 2Enter your estimated annual income: Provide your expected taxable income for the current financial year, including salary, business income, and investment returns.
- 3Select your employment type: Choose whether you are a PAYG employee or a sole trader/business owner, as repayment methods differ.
- 4Review your repayment amount: The calculator will show your compulsory repayment percentage and dollar amount based on ATO income thresholds.
- 5Plan your voluntary repayments: Use the result to decide whether making additional voluntary repayments before indexation would save you money.
Worked Australian Example
Practical Example
Priya is a 27-year-old marketing manager in Brisbane, QLD, earning $85,000 per year. She has a HELP debt of $36,000 from her commerce degree. Using the HECS-HELP Repayment Calculator Australia, Priya enters her debt amount and salary. The calculator applies the 2025-26 marginal repayment system: because her $85,000 income falls in the 15% band, she repays 15% of the amount above the $67,000 threshold — that is, 15% × ($85,000 − $67,000) = 15% × $18,000 = $2,700 per year. Her employer will withhold this amount through PAYG withholding. Priya also notes that indexation will apply to her remaining debt on June 1. She decides to make an extra $2,000 voluntary repayment before indexation day to reduce her loan balance. The calculator helps her see that this voluntary payment will save her approximately $80 in indexation costs for the year.
How Our HECS-HELP Repayment Calculator Works
Your compulsory HECS-HELP repayment is worked out by the ATO from your **repayment income**, not your take-home pay. Repayment income is your taxable income plus any reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income added back. The calculator follows the same three steps the ATO uses: 1. **Find your repayment income** — we start from the annual income you enter (salary plus other assessable income and add-backs). 2. **Compare it to the $67,000 threshold** — below $67,000 you repay nothing. From FY 2025-26 the ATO uses a **marginal** system, so only the income *above* $67,000 is used to work out your repayment. This replaced the old method, which applied a single percentage to your whole income. 3. **Apply the marginal rates** — 15% on income from $67,001 to $125,000, 17% from $125,001 to $179,285, and 10% on income of $179,286 and above, charged only on the income above the $67,000 threshold. For example, someone earning $85,000 repays 15% × ($85,000 − $67,000) = $2,700. Separately, your outstanding balance is **indexed on 1 June each year** by the lower of the CPI or Wage Price Index. Indexation is applied to whatever balance remains after voluntary and compulsory repayments have been credited, which is why paying down before 1 June reduces the amount that gets indexed. Always confirm the current-year thresholds on ato.gov.au, as they are adjusted annually.
When to Use This Calculator
Use this calculator whenever your income — or your loan balance — changes enough to affect what you'll owe at tax time. The most useful moments are: **before you start a new job or accept a pay rise**, so you can check whether crossing a new threshold band lifts your repayment percentage; **in May, before the 1 June indexation date**, to decide whether a voluntary lump sum is worthwhile; and **at the start of the financial year**, to set aside the right amount if you're a sole trader or contractor whose HECS isn't withheld automatically. It's also handy when comparing job offers with different salaries, since a higher gross wage can mean a noticeably larger compulsory repayment. If your only income is below the minimum threshold for the year, you can confirm here that no repayment is required.
Common HECS-HELP Repayment Calculator Questions
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