// STUDENT DEBT

HECS / HELP
Repayment Calculator

Q: Does HECS appear on my credit file?

No. HECS-HELP debt is not reported to credit bureaux and does not appear on your credit report. However, lenders treat it as a liability in mortgage serviceability calculations even though it doesn't formally affect your credit score.

See exactly how much you'll repay this year, how long your HELP debt will take to clear, and how much indexation will cost you over time. Uses ATO FY2025–26 repayment thresholds.Rates current as at 1 July 2025 · ATO FY2025–26

// YOUR_DETAILS

Enter your HELP balance and income details.

Current HELP / HECS debt$28,000

Current gross income$72,000

Expected annual income growth3.0%

HELP indexation rate (CPI)3.0%

FY2024 was 4.7% (exceptional). FY2025 estimate ~3.0%. Applied 1 June each year.

Current age24

💡You're $2,856 below the next repayment band (4%). If your income crosses $74,856, your repayment jumps to $2,620/yr.

// REPAYMENT_BANDS_FY2024–25

$54,435 – $62,8501.0%

$62,851 – $66,6202.0%

$66,621 – $70,6182.5%

$70,619 – $74,8553.0%

$74,856 – $79,3463.5%

$79,347 – $84,1074.0%

$84,108 – $88,7564.5%

$88,757 – $93,9695.0%

$93,970 – $99,9965.5%

$99,997 – $105,9966.0%

$105,997 – $112,3556.5%

$112,356 – $119,0977.0%

$119,098 – $126,9437.5%

$126,944 – $134,9598.0%

$134,960 – $143,2578.5%

$143,258 – $151,2009.0%

$151,201 – $159,7429.5%

$159,743 – +10.0%

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This year's repayment

$2,160

$42/wk · $83/fn

Repayment rate

3.0%

of gross income

Years to repay

Debt-free at age 35

Total repaid

$33,557

principal + indexation

Total indexation cost

$5,557

at 3.0% p.a.

Effective extra cost

20%

indexation as % of original debt

// DEBT_BALANCE_OVER_TIME

Outstanding Balance

Annual Repayment

// YEAR_BY_YEAR_BREAKDOWN

Age / Year	Income	Rate	Indexation	Repayment	Balance
25 yr 1	$72,000	3.0%	+$840	−$2,160	$26,680
26 yr 2	$74,160	3.0%	+$800	−$2,225	$25,255
27 yr 3	$76,385	3.5%	+$758	−$2,673	$23,340
28 yr 4	$78,676	3.5%	+$700	−$2,754	$21,286
29 yr 5	$81,037	4.0%	+$639	−$3,241	$18,684
30 yr 6	$83,468	4.0%	+$561	−$3,339	$15,905
31 yr 7	$85,972	4.5%	+$477	−$3,869	$12,514
32 yr 8	$88,551	4.5%	+$375	−$3,985	$8,904
33 yr 9	$91,207	5.0%	+$267	−$4,560	$4,611
34 yr 10	$93,944	5.0%	+$138	−$4,697	$52
35 yr 11	$96,762	5.5%	+$2	−$54	✓ Cleared

Repayment amounts are calculated using ATO FY2024–25 thresholds on taxable income. Indexation is applied each 1 June to the outstanding balance. Actual repayments are collected via your tax return or PAYG withholding. Not financial advice.

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HECS paid off in 11 years · Total: $33,557

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How HECS-HELP Repayments Work in Australia

Your HECS-HELP debt is repaid through the tax system once your repayment income exceeds the annual threshold — $54,435 (Source: ATO HELP repayment thresholds FY2025–26) for FY2025–26. Repayments are a percentage of your entire repayment income, not just the amount above the threshold, and they increase with income. The FY2025–26 rates begin at 1% of income at the $54,435 threshold and rise to 10% for incomes above $159,664. Repayments are made annually through your tax return, not as deductions from each pay cycle.

Indexation — and why 2023 was a shock

HECS-HELP debts are indexed to the Consumer Price Index (CPI) each year on 1 June. For most of the past decade, indexation was negligible — typically 1–2%. In June 2023, indexation jumped to 7.1%, adding thousands of dollars to existing balances overnight. A $30,000 debt became $32,130 in a single adjustment. The government subsequently passed legislation from 2025 to cap indexation at the lower of CPI and the Wage Price Index (WPI), and provided a credit to reduce debts already indexed under the old rules. This change significantly reduces the long-run cost of HELP debt in a high-inflation environment.

How HECS reduces your borrowing power

Mortgage lenders treat HECS repayment obligations as a recurring liability — similar to a car loan or credit card payment. When assessing serviceability, most lenders calculate your estimated annual HECS repayment based on your income and deduct it from your disposable income available for loan repayments. On a $70,000 income, the estimated annual HECS repayment is approximately $4,340 (6.2% repayment rate). This can reduce your maximum borrowing capacity by $70,000–$100,000 depending on the lender's model. Unlike other debts, you cannot close a HECS account voluntarily to improve borrowing power — it persists until repaid.

Should I voluntarily repay my HECS debt faster?

This is one of the most debated questions in Australian personal finance. The core argument against early repayment is that HECS is an interest-free debt (you only pay indexation, not interest), so money used to repay it early could instead be invested in higher-returning assets. The counter-argument is that with indexation now potentially matching wage growth, and the debt's impact on mortgage borrowing capacity, clearing it has real financial value. The answer depends on your income trajectory, whether you plan to buy property, and your investment risk tolerance.

Does salary sacrifice reduce my HECS repayments?

It depends on the type of salary sacrifice. The ATO defines “repayment income” as taxable income plus any Reportable Employer Super Contributions (RESC). Salary sacrifice to super above your employer's SG amount creates RESC, which is added back to your repayment income — so the HECS repayment calculation does not change. Other forms of salary packaging (such as novated leases) may reduce your repayment income, depending on structure. This is a frequently misunderstood area — verify with a tax agent before relying on salary sacrifice to lower HECS repayments.

Does HECS appear on my credit file?

No. HECS-HELP debt is not reported to credit bureaux (Equifax, Experian, illion) and does not appear on your credit report. It cannot be default-listed or affect your credit score. However, it is disclosed on your tax return and the ATO notifies lenders of your HELP debt balance if you provide a tax return during a home loan assessment. It is de facto disclosed in most mortgage applications and treated as a liability in serviceability calculations, even though it does not formally affect your credit score.

What happens to my HECS if I move overseas?

Since 2017, Australians living overseas are still required to make HELP repayments. The repayment obligation is based on your worldwide income. You must register with the ATO as an overseas debtor and self-assess your repayment income. Failure to comply can result in compulsory repayment notices and penalties. The income thresholds are indexed separately and differ slightly from the domestic thresholds. This change closed the loophole where Australians could effectively defer repayments indefinitely by working abroad.

// INCOME_TAX

See how your taxable income, HECS repayment, and take-home pay interact across different salary levels.

Income Tax Calculator →

// PAY_RISE

Assess whether a pay rise triggers a higher HECS repayment band and how it affects your net take-home.

Pay Rise Calculator →

General information only. This calculator is a planning tool. It does not constitute financial, tax, or legal advice. For advice specific to your circumstances, consult a licensed financial adviser or registered tax agent. Figures use current ATO rates and are indicative only.

HECS / HELPRepayment Calculator