Estimate your compulsory HECS-HELP repayment for the year based on your income and current debt.
Based on 2024-25 ATO repayment income thresholds (example)
This calculator estimates your compulsory HECS-HELP repayment for the current income year based on your repayment income and outstanding debt balance. It shows the annual compulsory repayment amount, the monthly equivalent withheld from wages, and the repayment rate that applies at your income level based on the ATO's 2024-25 threshold table. HECS-HELP repayments are compulsory once income exceeds the minimum threshold and are collected through the tax system — withheld from wages throughout the year by your employer (via your tax file declaration) or assessed at tax return time. This calculator is a quick reference tool for the current year's repayment; for a multi-year projection showing how long it takes to fully repay your debt including indexation, see our HECS-HELP Calculator.
The compulsory repayment is calculated as a percentage of your total repayment income (not just the amount above the threshold). The applicable rate is determined by which income bracket you fall into, using the ATO's repayment income threshold table for the income year.
Formula: Annual Repayment = Repayment Income × Applicable Rate (from ATO threshold table). Monthly Withholding ≈ Annual Repayment ÷ 12.
2024-25 ATO repayment rate table (example — check ATO for current year):
Example: A$65,000 repayment income with A$25,000 debt: The 2024-25 rate for A$65,000 is 2.0%. Annual compulsory repayment = A$65,000 × 2.0% = A$1,300. Monthly withholding ≈ A$108. If your remaining debt is A$25,000, this year's repayment represents 5.2% of the balance. (Note: the debt is also indexed to CPI on 1 June each year — see our HECS-HELP Calculator for a full multi-year payoff projection.)
HECS-HELP is Australia's income-contingent higher education loan scheme, allowing eligible students at Commonwealth-supported places to defer their student contribution amounts and repay through the tax system once income exceeds a threshold. Unlike a commercial loan, there is no interest charged — instead, the outstanding balance is indexed to the Consumer Price Index (CPI) annually on 1 June, maintaining the real purchasing-power value of the debt. The compulsory repayment amount increases as income rises through the threshold brackets, with rates from 1% to 10% of total repayment income. An important feature of HECS-HELP is that the repayment rate applies to the entire income, not just the income above the threshold — so crossing into the next bracket results in a slightly higher repayment on the whole income amount, not just the marginal amount. This can create a minor "bracket notch" where a small income increase results in a disproportionately larger compulsory repayment. Employers are required to withhold additional amounts from wages to cover HECS-HELP repayments once an employee declares they have a debt on their tax file declaration form — the amounts withheld are based on the ATO's withholding tables and are reconciled through the annual tax return. The ATO will apply your tax return assessment against your HECS-HELP account, reducing your outstanding balance. You cannot voluntarily choose to pay less than the compulsory repayment if income is above the threshold — the repayment is mandatory. However, you can make additional voluntary repayments at any time to reduce the balance faster.
Repayment income is the income figure the ATO uses to determine your HECS-HELP repayment rate. It is broader than your taxable income and includes: your taxable income (salary, wages, investment income), plus reportable fringe benefits (the grossed-up value of any employer-provided fringe benefits above the threshold), plus total net investment losses (if you have losses from investment properties or shares that reduced your taxable income), plus reportable employer super contributions (any super contributions above the compulsory super guarantee that your employer reports on your payment summary). For most employees without complex arrangements, repayment income ≈ annual salary before tax.
Your employer's HECS-HELP withholding is an estimate based on annual income projections. If your actual repayment income for the year ends up lower than estimated (for example, due to a career break, reduced hours, or part-year employment), you may have had too much withheld. When you lodge your tax return, the ATO reconciles the amount withheld against your actual compulsory repayment — any excess is refunded to you (or reduces the tax you owe), and the actual repayment amount is applied to your HECS-HELP balance. Similarly, if insufficient amounts were withheld, you will owe the shortfall through your tax return.
The ATO combines all HELP-type debts (HECS-HELP, FEE-HELP, OS-HELP, SA-HELP, VET Student Loans, and VET FEE-HELP) into a single total HELP debt account. The compulsory repayment based on your income applies to your total combined HELP debt, not each individual debt separately. All your HELP debts are indexed by the same CPI rate on 1 June. When you make a voluntary repayment, you can specify which debt account to apply it to, or the ATO will apply it according to their standard allocation method.
There is no fixed minimum dollar repayment — the compulsory repayment is always a percentage of your income (from 1% to 10% of total repayment income depending on your bracket). There is, however, a minimum income threshold (A\$54,434 for 2024-25) below which no compulsory repayment applies at all. If your outstanding balance is less than the annual repayment calculated, the ATO applies only the amount needed to clear the balance — you are not required to overpay. Voluntary repayments can be made at any time with a minimum voluntary repayment of A\$500.
No — HECS-HELP debt is not reported to credit bureaus (Equifax, Experian, or Illion) and does not appear on your credit file. It therefore has no direct impact on your credit score. However, HECS-HELP does affect your financial position in ways that matter to lenders: the compulsory repayment reduces your disposable income, and lenders include it in their serviceability assessments when calculating how much you can borrow for a home loan. The net effect is that HECS-HELP can reduce your home loan borrowing capacity, even though the debt itself is invisible to credit agencies.
Yes — voluntary repayments can be made at any time via ATO online services on myGov, with a minimum voluntary repayment of A\$500. These go directly to reducing your outstanding HECS-HELP balance. As of 2017, the previous 5% bonus for voluntary repayments was removed, so there is no upfront incentive beyond the interest-equivalent saving from reduced CPI indexation on the remaining balance. Voluntary repayments make most sense when CPI indexation is high (your balance is growing faster) or when you have surplus funds that cannot earn a better after-tax return elsewhere.
Disclaimer: The information, thresholds, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial or taxation advice. HECS-HELP repayment income thresholds, repayment rates, and CPI indexation rates are set by the ATO and change annually — the figures shown are examples based on 2024-25 ATO data and may not reflect the current year's thresholds. Always refer to the ATO website or contact the ATO for current HECS-HELP repayment information. Consult a registered tax agent for advice specific to your circumstances.