HECS-HELP Repayment Calculator (2024-25)
Work out your compulsory HECS-HELP repayment using the official 2024-25 ATO thresholds. See your annual repayment, the rate applied, how much comes out per pay, and roughly how many years until your study loan is paid off.
Your base salary excluding super.
Check MyGov for your current balance.
Reportable super contributions are added back to repayment income.
Annual compulsory HECS repayment
$3,400
at 4.0% of your repayment income
Repayment rate
4.0%
Applied to full income
Per fortnight
$131
Withheld from pay
Years to pay off
~10
~3.2% indexation
Take-home impact
-$3,400
Reduction per year
Repayment projection (approx., 3.2% indexation applied 1 June each year)
| Year | Repayment | Indexation | Remaining |
|---|
2024-25 HECS-HELP repayment thresholds
| Repayment income | Rate |
|---|---|
| $0 – $54,434 | 0.0% |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,186 | 6.0% |
| $106,187 – $112,558 | 6.5% |
| $112,559 – $119,310 | 7.0% |
| $119,311 – $126,468 | 7.5% |
| $126,469 – $134,057 | 8.0% |
| $134,058 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664+ | 10.0% |
What is HECS-HELP?
HECS-HELP is the Australian Government's interest-free study loan scheme for eligible Commonwealth-supported students at university. The Government pays the student contribution to your university up front, and you pay it back through the tax system once your income passes the minimum repayment threshold.
Today the official program name is HELP (Higher Education Loan Program), with HECS-HELP being the sub-type for Commonwealth-supported places. Most Australians still call any university debt “HECS” in conversation. The same repayment rules apply across HECS-HELP, FEE-HELP, OS-HELP, SA-HELP, VET Student Loans and the Student Start-up Loan — one combined repayment, one combined indexation event.
How HECS-HELP repayments work
HECS-HELP doesn't charge interest. Instead, the balance is indexed each year on 1 June (more on that below), and you make compulsory repayments through the tax system once your income is high enough.
There are two ways to repay:
- Compulsory repayments — calculated by the ATO at tax time based on your repayment income. Your employer withholds extra tax during the year if you've ticked the HECS box on your TFN declaration, then the ATO trues it up after lodgement.
- Voluntary repayments — lump sums you choose to pay directly to the ATO via BPAY or through MyGov. No discount applies in 2024-25, but they reduce the balance that gets indexed on 1 June.
Your repayment income for 2024-25 is your taxable income plus reportable fringe benefits, reportable employer super contributions (including salary sacrifice), net investment losses and exempt foreign employment income. The percentage applied is shown in the table above. The rate is multiplied by your whole repayment income, not just the part above the threshold.
The 2024-25 repayment thresholds
For the 2024-25 financial year, repayments kick in once your repayment income reaches $54,435, starting at 1% and climbing to 10% once you earn over $159,664. The full schedule:
| Repayment income (2024-25) | Repayment rate |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,186 | 6.0% |
| $106,187 – $112,558 | 6.5% |
| $112,559 – $119,310 | 7.0% |
| $119,311 – $126,468 | 7.5% |
| $126,469 – $134,057 | 8.0% |
| $134,058 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 and over | 10.0% |
Source: ATO — Study and training loan repayment thresholds and rates 2024-25.
Repayment income (and why salary sacrifice doesn't reduce it)
This is the single most misunderstood part of HECS. People assume that because salary sacrifice into super reduces your taxable income, it must also reduce your HECS repayment. It doesn't.
From 1 July 2024, the ATO calculates compulsory HELP repayments on repayment income, which is defined as:
- Taxable income (your salary after standard deductions), plus
- Reportable fringe benefits, plus
- Reportable employer super contributions (including salary sacrifice and personal deductible contributions), plus
- Net investment losses (e.g. negative gearing), plus
- Exempt foreign employment income.
Because the ATO adds reportable super contributions back in, salary sacrificing $10,000 into super doesn't move you down a HECS band. The repayment rate is calculated on the same total income either way. Salary sacrifice is still a good idea for most people on tax-saving grounds — it just won't help with HECS. Tick the “I salary sacrifice into super” box on the calculator above to see this in action.
Indexation — the annual increase on 1 June
Your HELP balance is indexed once a year on 1 June. Indexation is applied to any part of the debt that has been owed for more than 11 months. The rate is the published HELP indexation rate, which from 2023 is capped at the lower of CPI or the Wage Price Index (WPI). For 2024 the indexation rate was 4.0%. For 2025 it was approximately 3.2%.
The 2023 cap was introduced after the 2023 indexation spike of 7.1% caused political pressure. The Government also retrospectively re-calculated 2023 and 2024 indexation using the new rule, refunding the difference for some borrowers.
Practical implication: paying off a chunk just before 1 June reduces the dollar amount that gets indexed. Paying it off a day later doesn't help that year.
Voluntary repayments — are they worth it?
There's no longer a bonus or discount for voluntary repayments (the 5% bonus was scrapped in 2017). So voluntary repayments are just about reducing your balance ahead of indexation.
Honest rule of thumb:
- If you can earn more than the indexation rate elsewhere (e.g. a mortgage offset at 6%, after-tax investment returns above 4-5%), keep the money out of HECS.
- If your debt is small and within striking distance of being paid off, knocking it out can be psychologically worth it and removes the compulsory deduction from every payslip.
- Never use credit-card or high-interest debt money to pay down HECS — the maths is backwards.
- Time any voluntary repayment before 1 June so you avoid indexation on that amount.
Examples by salary
Compulsory annual repayment at different salaries (2024-25 thresholds, repayment income = gross salary, no salary sacrifice or fringe benefits):
| Gross salary | Rate | Annual repayment | Weekly | Fortnightly |
|---|---|---|---|---|
| $50,000 | 0% | $0 | $0 | $0 |
| $60,000 | 1.0% | $600 | $12 | $23 |
| $80,000 | 4.0% | $3,200 | $62 | $123 |
| $100,000 | 5.5% | $5,500 | $106 | $211 |
| $130,000 | 8.0% | $10,400 | $200 | $400 |
| $160,000 | 10.0% | $16,000 | $308 | $615 |
The repayment rate applies to your whole repayment income. A small pay rise can push you into the next band and increase the rate applied to everything below it.
How long will it take to pay off?
The rough formula is:
Years ≈ debt ÷ (annual repayment − annual indexation)
For example, a $30,000 debt with an $85,000 salary — rate 4.5%, annual repayment $3,825. Indexation at 3.2% on $30,000 is $960 in year one. Net reduction is $2,865 in year one, so the debt clears in roughly 11 years at the same salary. The calculator above does the year-by-year compounding for you.
Earlier in your career your salary climbs, which lifts your repayment rate — you typically clear the debt faster than the flat-salary estimate suggests. The other lever is hitting it with voluntary lump sums just before 1 June.
Proposed 2025-26 reform — 20% wipe and revised thresholds
The Government announced in late 2024 a package of HELP changes intended to start from 1 July 2025, subject to legislation passing parliament:
- A one-off 20% reduction of every Australian's HELP balance, applied before 1 June 2025 indexation.
- A new marginal-style repayment system where the rate applies only to the part of your income above each threshold (rather than your whole income).
- The repayment-free threshold lifted to around $67,000 (75% of median wage).
Until the legislation is passed and the ATO updates its tables, this calculator continues to use the official 2024-25 rules. We'll add a 2025-26 toggle once the new thresholds are formally published.
Frequently asked questions
How much HECS do I pay on $80,000?
On a repayment income of $80,000 for 2024-25, the rate is 4.0%. That's $3,200 a year, or about $123 a fortnight. Remember the rate applies to your whole income, not just the bit above the threshold.
How much HECS do I pay on $100,000?
On $100,000 the rate is 5.5%, giving an annual compulsory repayment of $5,500 (around $211 per fortnight or $458 per month).
How much HECS do I pay on $120,000?
On $120,000 the rate is 7.5%, giving an annual compulsory repayment of $9,000 (around $346 per fortnight).
When does HECS start being deducted from my pay?
Tick the HECS-HELP box on your Tax File Number declaration when you start a job. Your employer then withholds extra PAYG from each pay if your annualised income looks like it'll cross the $54,435 threshold. The ATO trues it up at tax time based on your actual repayment income.
How is HECS-HELP indexed?
Your balance is indexed on 1 June each year. From 2023, indexation is capped at the lower of CPI or the Wage Price Index. 2024 indexation was 4.0%, 2025 was about 3.2%. Indexation only applies to the portion of the debt that's been owed for more than 11 months.
Does salary sacrifice reduce HECS-HELP repayments?
No. The ATO uses repayment income, which adds reportable super contributions back to your taxable income. Salary sacrificing into super doesn't reduce your HECS repayment. See our salary sacrifice calculator for what it does do.
Is it worth making voluntary HECS repayments?
There's no longer any discount for voluntary repayments. They reduce your balance before 1 June indexation, so the maths favours them when you can't earn more than the indexation rate elsewhere. If you've got a mortgage offset or higher-interest debt, prioritise those first.
What happens to HECS if I move overseas?
Australian residents living overseas for more than 183 days in any 12-month period must declare worldwide income to the ATO and may have to make a compulsory overseas levy repayment, using the same thresholds and rates as residents. Indexation still applies each 1 June.
Can I claim HECS-HELP as a tax deduction?
No. Neither compulsory nor voluntary HECS-HELP repayments are tax-deductible. Some self-education expenses for ongoing study can be deductible, but the repayment itself never is.
What's the difference between HECS and HELP?
HECS (1989) became HELP (Higher Education Loan Program) in 2005. The current sub-types are HECS-HELP, FEE-HELP, OS-HELP, SA-HELP and VET Student Loans. Most Australians still call any university debt “HECS”.
How is the 2024-25 repayment rate calculated?
The ATO works out your repayment income (taxable income + reportable fringe benefits + reportable super + net investment losses + exempt foreign employment income), looks up the band, and applies the percentage to your whole repayment income.
How accurate is this calculator?
It uses the official 2024-25 ATO HECS-HELP repayment thresholds. The annual repayment figure is accurate for the repayment income you enter. The years-to-payoff figure assumes a constant repayment income, applies indexation at about 3.2% each 1 June, and ignores voluntary repayments. It's a strong estimate, not personal financial advice.
Official ATO and StudyAssist references
- HECS-HELP compulsory repayments — ATO
- Study and training loan repayment thresholds and rates — ATO
- Study and training loan indexation rates — ATO
- StudyAssist — official government info on HELP
Related calculators
Australian Income Tax Calculator
Work out your full take-home pay for 2024-25, with or without HECS.
Salary Sacrifice Calculator
See your tax saving from sacrificing into super (it won't reduce HECS, though).
Superannuation Calculator
Project your super balance to retirement.
Pay Period Converter
Convert annual to weekly, fortnightly or monthly.
This calculator is for information only and is not personal financial advice. For decisions specific to your situation, speak with a registered tax agent or licensed financial adviser. We are not affiliated with the Australian Taxation Office.