HECS-HELP Repayment Calculator 2026-27
Calculate your compulsory HECS-HELP repayment for the 2026-27 financial year using confirmed ATO thresholds. Enter your repayment income, current HELP debt balance, expected salary growth, and CPI indexation rate to get your annual repayment, monthly deduction, estimated years to pay off, total cost including indexation, and a year-by-year payoff table. 100% private — all calculations run in your browser.
How HECS-HELP Repayments Work in Australia (2026-27)
The HECS-HELP repayment calculator estimates your compulsory Higher Education Loan Program repayment using the Australian Taxation Office 2026-27 income thresholds. HECS-HELP is an income-contingent loan scheme that allows eligible Australian students to defer university tuition fees. Repayments are collected automatically through the tax system once your repayment income — a broader measure than taxable income alone — exceeds the minimum threshold of $54,435 for 2026-27, based on confirmed ATO rates (source: ato.gov.au).
The repayment rate is applied to your entire repayment income, not just the portion above each bracket boundary. Rates range from 1% at $54,435 to 10% for incomes above $159,663, across 19 progressive brackets. This means a salary increase that crosses a threshold boundary can increase your total annual repayment significantly — a threshold-jump effect worth modelling before negotiating a pay rise. Last updated: May 2026. Based on confirmed ATO 2026-27 schedule.
Understanding Repayment Income vs Taxable Income
Your HECS-HELP repayment income is calculated differently from the taxable income shown on your tax return. The ATO adds back four additional components to your taxable income: net investment losses (e.g., negatively geared rental properties), reportable fringe benefits (salary-packaged benefits your employer reports), reportable employer superannuation contributions (super contributions above the compulsory rate your employer reports), and exempt foreign employment income. Adding these back ensures that income-reducing strategies do not artificially lower the repayment rate for HELP debtors. Enter your best estimate of this combined figure in the calculator above.
If you are unsure of your repayment income, a good starting point is your gross taxable salary. For most employees without investment properties or salary packaging, taxable income and repayment income are the same. For those who salary sacrifice into superannuation above the standard employer rate, you will typically need to add the reportable super amount back in.
HELP Debt Indexation and the True Cost of Your Debt
HELP debts are indexed annually on 1 June. Since 2023, the indexation rate is capped at the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), as legislated by the Australian Government to protect borrowers during high-inflation periods. The 2025-26 indexation rate was 3.2% (CPI). The 2026-27 rate will be determined by the ATO in mid-2026 and will appear in your ATO online services account. This calculator defaults to 3.2% — update the field with the confirmed rate once published.
Indexation is applied to your opening balance each 1 June, before any compulsory repayments for the year are credited. For a $40,000 debt at 3.2%, this adds $1,280 before any repayment is deducted. For lower-income debtors whose annual repayment is close to the indexation amount, debt reduction can be slow. The year-by-year table this calculator generates reveals the full picture: the total indexation cost and total amount repaid, both of which may substantially exceed the original loan amount.
Tips for Paying Off Your HECS-HELP Debt Faster
Consider making a voluntary lump-sum repayment before 1 June each year. Even a few hundred dollars applied before the indexation date prevents that amount from being indexed, reducing the effective cost. Voluntary repayments are processed via myGov or BPay within days, and there is no minimum amount requirement (though ATO guidance notes payments below $500 may not show immediately).
Salary sacrificing into superannuation above the standard compulsory rate increases your reportable super contributions, which the ATO adds back to your repayment income — this can push you into a higher HELP bracket. By contrast, standard employee superannuation contributions are not added back. Model both scenarios using this calculator before adjusting your super strategy. For threshold-boundary planning, use our HELP Threshold Jump Checker to see exactly how much salary room you have before the next repayment bracket kicks in.
Frequently Asked Questions
What is the HECS-HELP repayment threshold for 2026-27?
The minimum HELP repayment threshold for the 2026-27 income year is $54,435. If your repayment income is below this amount, no compulsory repayment is required. Once income exceeds this threshold the rate starts at 1% and rises progressively through 19 brackets to a maximum of 10% for incomes above $159,663. These rates are confirmed by the ATO for the 2026-27 financial year.
What counts as repayment income for HECS-HELP?
Repayment income is broader than taxable income alone. It includes your taxable income plus net investment losses, total net investment losses, reportable fringe benefits amounts, reportable employer superannuation contributions, and exempt foreign employment income. Adding these components back ensures high earners who use investment losses or salary packaging to reduce taxable income still repay at the appropriate rate.
How does HECS-HELP debt indexation work in 2026-27?
HELP debts are indexed annually on 1 June based on the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), as legislated by the Australian Government in 2023. Indexation is applied to the opening debt balance before any compulsory repayments for the year are credited. The 2025-26 indexation rate was 3.2% (CPI). The 2026-27 rate will be confirmed by the ATO in mid-2026. This calculator lets you model different CPI scenarios.
Can I make voluntary HECS-HELP repayments?
Yes. You can make voluntary repayments to the ATO at any time through myGov or by BPay. The 5% voluntary repayment bonus was removed in 2017, but paying extra still reduces your balance before the next June indexation event, saving you from that year's indexation on the amount you repaid early. Even a $500 voluntary payment made before 1 June meaningfully reduces your debt.
How is the HECS-HELP repayment withheld from my pay?
When you complete a Tax File Number (TFN) declaration form for a new employer, you indicate that you have a HELP debt. Your employer then withholds an extra amount from each pay to cover the estimated annual repayment via PAYG withholding. The final compulsory repayment is calculated when you lodge your tax return. If too much was withheld you receive a refund; if too little you may owe more. The monthly deduction shown by this calculator is an estimate of that withholding.
What happens to my HECS-HELP debt if I live overseas?
Since 2017, Australian residents with HELP debt who move overseas must still make compulsory repayments based on their worldwide income. You must lodge an Overseas Travel Notification with the ATO and report your annual income. Failure to comply can result in an administrative penalty. The 2026-27 repayment thresholds and rates apply to worldwide income converted to Australian dollars.