Free calculator
HECS Payoff Calculator
Enter your HECS/HELP balance and income to see your exact payoff year, how much you repay each year, and the total cost of indexation.
Your results
DEBT-FREE
2034
9 yrs
THIS YEAR
$2,625
3.5% of income
INDEXATION
$3,906
added to balance
Payoff timeline
Assumes 3% income growth and 3% CPI indexation per year. Indexation capped at WPI from 2025.
Estimates only — not financial advice.
You'll be HECS-free in 2034
Clearing your debt frees up $2,625/yr. See your full wealth plan.
See my full plan →How does HECS repayment work?
HECS/HELP is an income-contingent loan — you only repay once your income crosses the repayment threshold ($54,435 in 2025–26). Your employer withholds the repayment automatically, the same way they withhold income tax. You never have to make manual payments unless you choose to.
The repayment rate rises with income. At $75,000 you repay 3.5% ($2,625/yr). At $100,000 you repay 5.5% ($5,500/yr). At $150,000 you repay 9.5% ($14,250/yr). These rates are set by the ATO and updated annually.
On 1 June each year, your outstanding balance is indexed to CPI. From 2025, indexation is capped at the lower of CPI or the Wage Price Index — a reform that helps slow balance growth. In years of high inflation (like 2023's 7.1%), this cap makes a meaningful difference.
HECS debt disappears when you die — it doesn't pass to your estate. It also doesn't directly affect your credit score, though lenders treat repayments as a recurring expense when assessing your borrowing capacity.
Frequently asked questions
When do HECS repayments start?
HECS/HELP repayments are mandatory once your income exceeds $54,435 (2025–26). Your employer withholds them automatically — you never see this money in your pay. Even below the threshold, your balance grows each year through CPI indexation on 1 June.
How much is taken out of my pay for HECS?
The repayment rate starts at 1% of income above $54,435 and rises in steps to 10% for incomes above $158,904. On $80,000 you repay 4% — roughly $267 per month. On $120,000 you repay 6.5% — roughly $650 per month.
Does HECS affect my mortgage borrowing capacity?
Yes. Lenders include your HECS repayment in your expenses when assessing serviceability. A $50,000 HECS balance on an $80,000 income reduces borrowing capacity by roughly $50,000–$80,000 depending on the lender.
What happens to my HECS debt if I live overseas?
From 2017, Australians living overseas are required to make HECS repayments based on their worldwide income. You self-assess and pay directly to the ATO. Failing to report overseas income can result in a debt plus interest.
Is it worth paying off HECS early?
Paying off HECS early makes sense if your investment return (after tax) is lower than the indexation rate (~3% CPI). From 2025, indexation is capped at the lower of CPI or the Wage Price Index. There is no bonus for voluntary repayments since the 10% discount was removed in June 2023.