FY 2025-26 — New Marginal System
HECS-HELP Repayment Calculator
Calculate your compulsory HELP repayment under the new marginal system from 1 July 2025, project your balance year-by-year with indexation, and see how voluntary payments change your payoff timeline.
Your situation
Your repayment
Year-by-year projection
| Year | Opening balance | Indexation | Compulsory | Voluntary | Closing balance |
|---|
How the calculation works
- Marginal repayment rates (from 1 July 2025): $0–$67,000: nil. $67,001–$125,000: 15c per $1 above $67,000. $125,001–$179,285: $8,700 plus 17c per $1 above $125,000. Above $179,285: a flat 10% of total repayment income.
- Indexation: applied on 1 June each year to the outstanding balance, at the lower of CPI or WPI (rule applies from 2024).
- Order of operations each year: indexation hits the opening balance first, then compulsory and voluntary repayments are subtracted.
- Source: ATO — Study and training support loans rates and repayment thresholds and StudyAssist — Loan increases and indexation.
How to read your repayment estimate
The calculator runs the three steps in the order the system actually applies them each year. First it indexes your opening balance on 1 June, at the lower of CPI or WPI. Then it takes off your compulsory repayment, worked out under the marginal system – you only pay on the income above $67,000, not on the whole lot. Then it takes off any voluntary payment you have added. Whatever is left rolls into the next year, and it repeats until the debt clears.
That order is the bit most people miss. Indexation is charged before your repayment lands, so a voluntary payment made before 1 June shrinks the balance that gets indexed – which is exactly why the timing of an extra payment changes your result.
The 2025-26 marginal repayment rates
From 1 July 2025, repayments are charged only on the part of your income above each threshold, not on your whole income:
| Repayment income | What you pay |
|---|---|
| $0 – $67,000 | Nothing |
| $67,001 – $125,000 | 15c for every $1 above $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c for every $1 above $125,000 |
| Above $179,285 | A flat 10% of your total repayment income |
“Repayment income” is not just your salary. It is your taxable income plus reportable fringe benefits, reportable super contributions, net investment losses, and any exempt foreign employment income. That is why some people owe more at tax time than their payslip suggests.
What this calculator does not account for
- The one-off 20% reduction – apply it to your balance yourself before you enter it, if it has already been applied.
- Income that changes year to year – the projection assumes your income stays where you set it.
- A different indexation rate each year – it holds your chosen rate flat. Recent rates were 4.7% (2023), 4.0% (2024) and 3.2% (2025), so it is worth running a couple of scenarios.
Treat the result as a planning estimate, not a statement of account. Always check your actual balance and compulsory repayment through myGov and the ATO.
Frequently asked questions
Do voluntary repayments actually help?
Yes, and the timing is the lever. Because indexation is applied to your opening balance on 1 June before repayments come off, a voluntary payment made shortly before 1 June lowers the balance that gets indexed. Try the same extra payment with and without it in the calculator and watch the payoff date move.
Why do I still owe at tax time if my employer withholds for HECS?
Employer withholding is only an estimate based on your expected income. If your actual repayment income – including reportable super, fringe benefits or investment losses – lands higher than expected, or you have more than one job, the withheld amount can fall short, and the gap shows up at tax time.
Does the 20% cut happen automatically?
The reduction is applied to outstanding balances by the system – you do not lodge anything for it. For this calculator, enter your balance after the cut. If you are not sure whether it has been applied yet, check your balance in myGov first.
What is indexation, and when does it hit?
Indexation keeps the real value of the debt steady – it is not interest in the bank-loan sense. It is applied once a year, on 1 June, at the lower of CPI or WPI (that “lower of” rule applies from 2024).
Is repayment income the same as my salary?
No. It is your taxable income plus reportable fringe benefits, reportable super, net investment losses and exempt foreign employment income. Two people on the same salary can end up with different repayment income.
General information only, not financial advice. Figures reflect the 2025-26 rules; always confirm your own balance and repayment via myGov and the ATO.