HELP/HECS Repayment Calculator

Calculate your compulsory HELP repayment based on your income. See how the new 2025-26 marginal rate system compares to the old flat rate system.

Annual Taxable Income

Your taxable income plus reportable fringe benefits, super contributions, and net investment losses.

HELP / Study Loan Balance

Your current HECS-HELP, VSL, or SSL balance. Check myGov for your exact amount.

Expected Income Growth (%)

CPI / Indexation Rate (%)

HELP debt is indexed to CPI each 1 June. Recent years: 7.1% (2023), 4.7% (2024), 3.2% (2025).

Voluntary Repayment per Year

Optional extra payments on top of compulsory repayments. No bonus discount since 2017.

Enter your income and loan balance to see your repayment projection.

How HELP Repayments Work

HELP (Higher Education Loan Program) repayments are compulsory once your repayment income exceeds the threshold. Your employer withholds repayments from your pay through the PAYG system if they know about your HELP debt.

What is Repayment Income?

Your repayment income is your:

Taxable income, plus
Reportable fringe benefits, plus
Reportable employer super contributions, plus
Net investment losses (added back)

This is usually higher than your taxable income if you salary sacrifice or receive fringe benefits.

2025-26 vs 2024-25: What Changed?

Old System (2024-25)

Flat rate on total income
Threshold: $54,435
Rates: 1% to 10%
Once you cross a threshold, the rate applies to ALL your income

New System (2025-26)

Marginal rate on income above threshold
Threshold: $67,000
Rates: 15% to 17% (on excess)
You only pay on the amount OVER $67,000

Example: $80,000 Income

Old System: $80,000 × 3.5% = $2,800

New System: ($80,000 - $67,000) × 15% = $1,950

Savings: $850/year

20% Debt Reduction (June 2025)

From 1 June 2025, all outstanding HELP, HECS-HELP, FEE-HELP, VET Student Loans, and other eligible study debts will receive a 20% reduction.

This is automatic - you don't need to apply
The ATO will process the reduction and notify you
Your reduced balance will appear on your ATO account after 1 June 2025

Understanding HELP Indexation

Your HELP debt is adjusted each 1 June by the Consumer Price Index (CPI). This means your balance can grow even while you're making repayments — and in high-inflation years, it can grow significantly.

Recent indexation rates:

2025: 3.2%
2024: 4.7%
2023: 7.1% (highest in decades)
2022: 3.9%

For a $30,000 balance at 3.5% CPI, indexation adds $1,050 per year. If your compulsory repayment is less than this amount, your debt will actually grow. The calculator above shows the full impact of indexation on your payoff timeline.

Frequently asked questions

What changed for HELP repayments in 2025-26?

From 2025-26, HELP repayments switched from a flat rate on total income to a marginal rate system. You now only pay on income above $67,000 (up from $54,435). This means lower repayments for most borrowers, especially those earning under $180,000.

What is repayment income for HELP?

Repayment income includes your taxable income plus reportable fringe benefits, reportable employer super contributions, and any net investment losses (added back). It's usually higher than your taxable income if you salary sacrifice or have fringe benefits.

Do I have to make HELP repayments?

HELP repayments are compulsory once your repayment income exceeds the threshold ($67,000 for 2025-26). They're automatically withheld from your pay if your employer knows about your HELP debt. You can also make voluntary repayments at any time.

Will my HELP debt get a 20% reduction?

Yes, from 1 June 2025, all outstanding HELP, HECS, VET Student Loans, and other eligible study debts receive a 20% reduction. This is automatic - you don't need to apply. The ATO will notify you via myGov.

Should I make voluntary repayments?

HELP debt is interest-free (it only increases with CPI indexation, which was capped at the lower of CPI or WPI from 2023). In most cases, it's better to invest extra money elsewhere rather than make voluntary repayments, unless you want to reduce your debt before applying for a home loan.

How does CPI indexation affect my HELP debt?

Your HELP debt is indexed on 1 June each year based on the Consumer Price Index (CPI). Recent indexation rates were: 7.1% (2023), 4.7% (2024), 3.2% (2025). High indexation can cause your debt to grow faster than your repayments, especially at lower incomes. Use the calculator to see how indexation affects your payoff timeline.

Should I make voluntary HELP repayments?

Since the voluntary repayment bonus was removed in 2017, there is no direct discount for paying extra. However, voluntary payments reduce the balance that gets indexed each June, saving you money over time. Use the calculator's voluntary repayment feature to see exactly how much indexation you would save and how many years earlier you could pay off your debt.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

Applies the 2025-26 HELP marginal repayment framework to the income inputs you enter. It does not calculate actual debt balances, indexation notices, or employer payroll setup.