Your compulsory repayment, done right.
See exactly how much HECS/HELP comes out of your pay in 2026–27 under the new marginal system — and why salary sacrificing into super won't shrink it. Built on current ATO thresholds.
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How HECS/HELP repayment works in 2026–27
Repayments are worked out from your repayment income, not just your salary, and collected through your normal pay under PAYG.
Wondering how much HECS comes out of your pay? This HECS calculator gives you an estimate of the compulsory repayment on your HELP loan or HECS debt. Compulsory repayments are calculated by the ATO from your repayment income — the ATO will calculate the amount, your employer withholds it across your pay cycle, and it's reconciled when you lodge your tax return. HELP debts are indexed by the ATO each year, and never charged interest. As a study and training loan repayment estimator, it applies the relevant repayment threshold whether you hold one loan type or several.
This HECS repayment calculator applies the current ATO thresholds for the 2026–27 financial year. Built on the ATO tax system, it works like a study-loan tax calculator: enter your annual income and it returns the repayment for the income year. The big change, in place since 1 July 2025, is that repayments are now marginal: you only repay a percentage of the income above the threshold, instead of a flat percentage of your whole income. That means crossing a bracket no longer claws back a slice of every dollar you earn — repayments are gentler, especially just above each threshold.
You repay nothing until your repayment income passes the minimum threshold. Above it, the rate steps up in two bands, and the total is always capped at 10% of your repayment income, whichever is lower.
Repayment rates — 2026–27
| Repayment income | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c per $1 over $69,528 |
| $129,718 and over | $9,028 + 17c per $1 over $129,717 |
The repayment is withheld from your pay through the year, like tax, and squared up when you lodge your return. It does not reduce your taxable income — it is a repayment of your loan, not a deduction.
$69,528 threshold
For 2026–27 you start repaying once your repayment income passes $69,528. Below that, your compulsory repayment is zero.
No interest
HELP debts are never charged interest. Your balance is indexed once a year on 1 June by the lower of CPI and wage growth.
Paid via PAYG
Your employer withholds extra from each pay to cover your expected repayment, so the bill rarely lands as a lump sum at tax time.
The salary sacrifice trap most calculators miss
Salary sacrificing into super is a popular way to cut income tax — and it works, because it lowers your taxable income. But it does not lower your HECS/HELP repayment, and this is where a lot of calculators go wrong.
When the ATO works out your repayment income, it adds the sacrificed amount back as reportable super contributions. So if you earn $90,000 and sacrifice $10,000, your taxable income drops to $80,000 for tax purposes — but your repayment income is still $90,000 for HELP. The compulsory repayment is unchanged. Enter a salary sacrifice amount above and you'll see it added straight back in the breakdown, exactly as the ATO does it.
What counts as your repayment income
Repayment income is broader than the salary on your payslip. The ATO combines:
- Taxable income — your income after allowable deductions.
- Reportable super contributions — including any salary sacrifice and personal deductible contributions.
- Reportable fringe benefits — the grossed-up value shown on your income statement.
- Total net investment loss — for example, negatively geared property added back.
- Exempt foreign employment income.
This calculator lets you add salary sacrifice and reportable fringe benefits on top of your income so the repayment matches what the ATO will actually assess.
Indexation, the 2025 cut, and clearing your debt
Your HELP balance grows only by indexation on 1 June each year, set at the lower of the Consumer Price Index and the Wage Price Index, so it reflects changes in the cost of living without outrunning wages. There is no commercial interest on top. In 2025 a one-off reduction of about 20% was applied to outstanding balances, wiping a chunk off most debts. Enter your current balance in Advanced options and the calculator estimates how many years your compulsory repayments would take to clear it, before each year's indexation is added.
Which study and training loans this covers
The same repayment thresholds and marginal rates apply across every study and training loan, so this works as one HECS repayment calculator whatever your loan type. That covers:
- HELP — the Higher Education Loan Program (HECS-HELP, FEE-HELP, OS-HELP and SA-HELP).
- VET Student Loans and the older VET FEE-HELP.
- Student Start-up Loan (SSL) and the Australian Apprenticeship Support Loan — formerly the Trade Support Loan.
- Student Financial Supplement Scheme (SFSS) — an older scheme some people are still repaying.
If you hold more than one study or training loan, the ATO and the Department of Education combine them for the repayment income test, so your compulsory repayment amount is worked out once across the lot — and reported on your income tax return.
Voluntary repayments and paying it off faster
On top of the compulsory amount taken from your pay, you can make voluntary repayments at any time to clear your debt repayments faster. A voluntary payment reduces your HELP balance straight away, but it does not lower the minimum repayment you owe for the current income year — that is still set by your annual income against the compulsory repayment threshold. Because there's no interest, the main reason to pay voluntarily is to get ahead of the annual indexation. Whatever you don't clear is simply repaid when you lodge your tax return each year until the balance hits zero.
Related calculators
All built on the same ATO figures for 2026–27.
Frequently asked questions
At what income do I start repaying HECS in 2026–27?
Compulsory repayments begin once your repayment income passes $69,528 for 2026–27. Below that you repay nothing. Above it you repay 15 cents per dollar up to $129,717, then 17 cents per dollar, capped at 10% of your total repayment income.
Does salary sacrifice reduce my HECS repayment?
No. Salary sacrificing to super lowers your taxable income for income tax, but the sacrificed amount is added back as reportable super contributions when your HELP repayment income is worked out. So it doesn't shrink your compulsory repayment — a detail many calculators get wrong, and one this tool handles correctly.
Is HECS/HELP interest-free?
Yes — no interest is charged. Instead your balance is indexed once a year on 1 June by the lower of CPI and the Wage Price Index, so it tracks prices or wages rather than an interest rate. A one-off reduction of about 20% was applied to balances on 1 June 2025.
How is the new marginal HECS system different from the old one?
Until 2024–25, reaching a threshold meant paying a flat percentage of your whole income. From 1 July 2025 the system is marginal: you only repay a percentage of the income above the threshold, so crossing a bracket no longer triggers a repayment on every dollar. Repayments are gentler, especially just above each threshold.
What is repayment income?
Repayment income is your taxable income plus reportable super contributions (including salary sacrifice), reportable fringe benefits, any net investment loss and exempt foreign income. It's usually higher than taxable income alone, which is why salary sacrifice doesn't reduce your repayment.
Which study loans does this calculator cover?
The same thresholds apply to HELP (including HECS-HELP, FEE-HELP and OS-HELP), VET Student Loans, Student Start-up Loans, the Australian Apprenticeship Support Loan and similar loans. If you hold more than one, they're combined into a single repayment income test.
Can I claim HECS as a tax deduction?
No. Compulsory HECS/HELP repayments are not tax deductible, and neither are voluntary repayments. Repaying your loan reduces the balance, not your taxable income, so it doesn't lower the tax you pay on your income tax return.
Do voluntary repayments reduce my compulsory repayment?
No. A voluntary repayment lowers your HELP balance immediately, but your compulsory repayment for the year is still set by your repayment income. Voluntary repayments just help you clear the debt faster and get ahead of the 1 June indexation.
How can I pay off my HECS faster?
Make voluntary repayments on top of the compulsory amount taken from your pay. Since there's no interest — only annual indexation tied to the cost of living — extra repayments before 1 June reduce the balance that gets indexed, so they have the most effect made early.