HECS-HELP Repayment Calculator 2026–27
Your 2026–27 HECS-HELP repayment under the marginal system (15% over $69,528, 17% over $129,717), fortnightly withholding, indexation, years to repay, total repaid, voluntary repayments and whether paying early beats your mortgage.
| Repayment band | — |
|---|---|
| Compulsory repayment this year | — |
| Per fortnight withheld by your employer | — |
| Indexation added this year | — |
| Net change in the debt this year | — |
| Years to repay (compulsory only) | — |
| Total repaid over that time | — |
| With voluntary repayments | — |
| Is paying it off early worth it? | — |
| Repayments at other incomes | — |
In short
HECS-HELP repayments in 2026–27 are nil up to $69,528 of repayment income, 15% of income above that to $129,717, 17% of income above that to $186,050, and 10% of total income beyond — $2,321 on $85,000, withheld at about $89 a fortnight. The debt carries no interest, only annual indexation on 1 June at the lower of CPI and wage growth, so voluntary repayments rarely beat a mortgage offset.
Who this is for: Graduates with a HELP debt planning repayments and voluntary payments.
HELP repayment thresholds 2026–27
| Repayment income | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of total repayment income |
- Repayment income is taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income — salary sacrifice does not reduce it.
- Indexation (not interest) is applied each 1 June at the lower of CPI and the wage price index.
- Employer withholding: tick "HELP debt" on your TFN declaration so extra PAYG covers the repayment; otherwise you get a bill at tax time.
- Voluntary repayments no longer earn a discount; they make sense mainly when indexation exceeds the return on your alternatives, or to clear a small balance and lift take-home pay before a mortgage application.
See also: Australian Income Tax Calculator 2026–27, Pay Calculator Australia 2026–27.
Assumptions
- Repayment = 15% of income over $69,528 to $129,717 + 17% to $186,050; 10% of all income above.
- Simulation: indexation applied to the balance each year, then the compulsory repayment (plus voluntary) credited; income grows at the rate entered.
- Comparison uses 6% (offset) or 7% (investing) against the indexation rate.
Worked example
Repayment band: 15% of income over $69,528 → $2,321 this year (2.7% of income), or about $89 a fortnight withheld. Indexation adds $1,024, so the debt falls by about $1,297 in year one. With 3% pay rises the repayment grows each year and the debt is cleared in about 10 years, with total repayments of about $38,600 — roughly $6,600 of indexation. At 6% a mortgage offset beats 3.2% indexation, so voluntary repayments are not worth it here.
Frequently asked questions
How much HECS do I pay on $85,000?
$2,321 in 2026–27 — 15% of the $15,472 above the $69,528 threshold — withheld at about $89 a fortnight.
Is HECS-HELP interest-free?
Yes — there is no interest, only annual indexation on 1 June at the lower of CPI and wage growth (3.2% assumed here).
Should I pay off my HECS early?
Usually not: indexation is low and the debt is forgiven on death. Prepay only if you have no better use for the money, want to boost take-home for a loan application, or indexation is unusually high.
Does salary sacrifice reduce my HECS repayment?
No — reportable super contributions are added back to repayment income, so sacrificing to super does not lower the repayment.
Does a HECS debt affect my home loan?
Lenders treat the repayment as a reduction in income, not as a debt; from 2025 some lenders ignore small balances close to being repaid.
What counts as repayment income?
Taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income.
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