HECS-HELP Repayment Calculator (FY2025-26)

What this calculator works out

This calculator estimates the compulsory annual repayment the Australian Taxation Office (ATO) charges against a Higher Education Loan Program (HECS-HELP) debt, plus how the loan balance will move after the next 1 June indexation. It models three things the ATO publication does not bundle into one tool:

1. The legislated whole-income repayment under the Higher Education Support Act 2003 — 18 bands from $54,435 (1.0%) to $159,664 and above (10.0%) for FY2025-26. Hit a threshold and the rate applies to your whole HELP Repayment Income (HRI), not just the slice above the threshold.
2. The proposed marginal repayment system announced in the 2025-26 Federal Budget — 15% on HRI between $67,000 and $124,999, then 17% on HRI of $125,000 and above. This is shown for comparison; until amending legislation passes, the whole-income system is the current law.
3. The 1 June indexation under the 2024 amending Act, which switched the indexation rate to the lower of CPI and WPI. Two scenarios are projected (2.5% optimistic, 4.0% conservative) so you can see the spread.

The figure returned is the typical compulsory repayment your employer would withhold through PAYG — not your tax bill, not your Medicare levy, not your Medicare Levy Surcharge. Pair it with the VIC stamp duty calculator or NSW stamp duty calculator when you are stress-testing a property purchase against your HECS-HELP cash flow.

Where the formula comes from

The whole-income brackets used here are the ATO-published HECS-HELP / Study and Training Loan repayment rates for the 2025-26 income year. The bracket rule is unusual by Australian tax standards: once HRI clears a threshold, the percentage applies to the whole HRI, not the slice above the threshold. So $74,855 (top of the 3.0% band) costs $2,245.65 in compulsory repayment, but $74,856 (one dollar more, into the 3.5% band) costs $2,619.96 — a marginal effective tax rate well above 100% on that single dollar.

The thresholds for FY2025-26 (whole-income system):

HRI band	Repayment rate (of whole HRI)
Below $54,435	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 – $106,185	6.0%
$106,186 – $112,556	6.5%
$112,557 – $119,309	7.0%
$119,310 – $126,467	7.5%
$126,468 – $134,056	8.0%
$134,057 – $142,100	8.5%
$142,101 – $150,626	9.0%
$150,627 – $159,663	9.5%
$159,664 and above	10.0%

The marginal-proposed model uses the parameters announced in the 2025-26 Budget: a $67,000 entry threshold, 15% on the slice to $124,999, and 17% on the slice above $125,000. There is no whole-income cliff under that model.

How to read the inputs

• Financial year — FY2025-26 uses the ATO-published thresholds. FY2026-27 is an estimate that lifts every threshold by 3.0% as a placeholder; replace it with the published schedule once the ATO publishes (usually May or June).
• Repayment system — Whole-income is the legislated, currently enforced system. Marginal (proposed) is the 2025-26 Budget proposal, shown for comparison.
• Taxable income — from your tax return: assessable income minus allowable deductions. Not your gross salary.
• HELP loan balance — the indexed balance shown on your myGov ATO account at the start of the income year. Voluntary repayments made before 1 June reduce the indexation base for that year.
• Reportable fringe benefits — the grossed-up amount on your PAYG income statement. Salary packaging through a not-for-profit hospital or charity does not reduce HRI even though it reduces taxable income.
• Reportable super contributions — salary-sacrificed super and reportable employer super contributions. Concessional super contributions made through salary sacrifice are added back into HRI.
• Net investment / rental loss — total net investment loss, including the loss from a negatively geared rental property. This is added back on top of taxable income.

Worked examples

1. Graduate on $58,000 with a $22,000 balance. HRI sits in the $54,435 – $62,850 band, so the whole-income rate is 1.0%. Compulsory repayment = $58,000 × 1.0% = $580 per year. At a 2.5% indexation scenario the loan still grows by $535 in the first year before repayments overtake indexation around year 4.

2. Mid-career professional on $95,000 with a $40,000 balance. HRI sits in the $94,504 – $100,174 band, so the rate is 5.5%. Compulsory repayment = $95,000 × 5.5% = $5,225 per year. Years to clear range from about 8 (low indexation) to 9 (high indexation).

3. Senior on $165,000 with a $60,000 balance. HRI is above $159,664, so the top 10.0% band applies. Compulsory repayment = $165,000 × 10.0% = $16,500 per year. The loan clears in about 4 years even at the conservative indexation scenario.

4. Salary-packaged hospital worker, $75,000 taxable income, $20,000 grossed-up fringe benefits. Taxable income alone would put HRI in the 3.0% band. Adding the fringe benefits pushes HRI to $95,000 — into the 5.5% band. Compulsory repayment jumps from $2,250 to $5,225. The packaging saves income tax but does not save HECS.

5. Marginal-proposed scenario, $80,000 HRI. Under the legislated system: 4.0% × $80,000 = $3,200. Under the proposed marginal system: ($80,000 − $67,000) × 15% = $1,950. The marginal model is meaningfully cheaper at this income level — about $1,250 a year. The cross-over point depends on the band structure that ends up in the legislation.

Common pitfalls

• HRI is broader than taxable income. Salary sacrificing into super, packaging a novated lease, or running a negatively geared rental does not reduce the HECS bill. The ATO grosses these items up specifically to stop them eroding compulsory repayments.
• Whole-income cliffs hurt at the boundaries. Crossing from the 3.0% band into the 3.5% band on a $1 pay rise can cost more than $370 in extra repayment. This is the headline reason for the proposed marginal model.
• Indexation runs against the balance outstanding for 11+ months. A voluntary repayment made on 31 May reduces the 1 June indexation base. A voluntary repayment made on 2 June does not affect that year's indexation.
• The 2024 reform is retrospective. The lower-of-CPI-and-WPI rule was applied back to the 1 June 2023 indexation, and the ATO issued automatic credits to many borrowers in late 2024. Check your myGov ATO account for the credit before assuming your historical balance.
• PAYG withholding is an estimate, not the final bill. Your employer withholds based on the HECS scale on your TFN declaration. The actual compulsory repayment is reconciled when you lodge your tax return — you can owe more (especially if you have multiple jobs, or significant non-PAYG income) or get a refund.
• The marginal model is not yet law. Until amending legislation passes Parliament, the whole-income system is the only system the ATO will assess against. Treat the marginal output as a planning aid, not as the figure your employer will withhold.

When to talk to a professional

This calculator gives a general estimate based on public ATO and Study Assist data. For advice on the interaction between HECS-HELP and specific decisions — salary packaging through a not-for-profit, choosing between voluntary repayment and super contribution, optimising income across financial years, an overseas income obligation, or working out the impact on a serviceability assessment for a home loan — speak to a registered tax agent or licensed financial adviser. Nothing on this page is personal tax, financial or legal advice.

Related calculators

• VIC stamp duty calculator — how much duty you would pay on a Melbourne property purchase, alongside your HECS commitments.
• NSW stamp duty calculator — the same exercise for a Sydney purchase, including First Home Buyer Assistance Scheme settings.
• Medicare Levy Surcharge calculator — another threshold-based liability assessed on a closely overlapping income measure.
• Working holiday tax calculator — if you carry a HECS-HELP debt and are on a 417 / 462 visa, study loan repayments still apply on Australian-sourced income.
• Division 293 super tax calculator — high-income earners often hit the top HELP rate and Division 293 in the same financial year.

Source: ATO — Study and training support loans: Loan repayment · ATO — HELP, TSL and SFSS repayment thresholds and rates · Study Assist — Loan indexation · Study Assist — Compulsory repayments · Education and Other Legislation Amendment (Achieving a Higher Education Loan Program) Act 2024 · Higher Education Support Act 2003.