Australia HECS-HELP Repayment Calculator 2024-25
Calculate your annual HECS-HELP student debt repayment, years to repay, and total indexation paid using 2024/25 ATO thresholds.
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How to use this calculator
- 1
Enter your current HECS-HELP debt balance — find this on your myGov account or latest ATO notice of assessment.
- 2
Enter your expected annual income (not including reportable fringe benefits, but including investment income).
- 3
Set your expected income growth rate — the APS wage index averages around 3% per year.
- 4
The calculator applies 2024/25 ATO repayment thresholds and 4% CPI indexation each year.
- 5
Repayments are automatically deducted from your salary by your employer through the PAYG system.
Frequently asked questions
When do HECS-HELP repayments start?
Mandatory HECS-HELP repayments begin once your repayment income exceeds the minimum threshold — $54,435 in 2024/25. Repayment income includes your taxable income plus reportable fringe benefits, total net investment losses, and other adjustments. Repayments are collected through the tax system, either via PAYG withholding from your salary or when you lodge your tax return. You can also make voluntary repayments at any time to reduce your debt faster.
How is HECS-HELP debt indexed?
HECS-HELP debt is indexed to the Consumer Price Index (CPI) each year on 1 June. This means your debt increases in line with inflation. In 2023, the CPI indexation rate was 7.1%, the highest in decades, which added thousands of dollars to many students' debts. In 2024, indexation was 4.7%. Unlike commercial loans, there is no interest charged — only CPI indexation. Some graduates choose to make voluntary repayments before 1 June to reduce the amount subject to indexation.
Can I pay off my HECS-HELP debt early?
Yes. You can make voluntary repayments to the ATO at any time via BPAY, online portal, or phone. Voluntary repayments are applied immediately and reduce your outstanding balance. There is no bonus discount for voluntary repayments (a 5% bonus was abolished in 2017). The main advantage of paying early is to reduce the amount of debt subject to annual CPI indexation. If you repay in full before 1 June, you avoid that year's indexation entirely.
What happens to HECS debt if I move overseas?
Since 2017, Australians living overseas are required to make HECS-HELP repayments. If you move overseas for more than 183 days, you must notify the ATO and make repayments based on your worldwide income above the minimum repayment threshold. Repayment rates are the same as domestic rates. You need to lodge an overseas travel notification and make repayments yourself — they are not automatically withheld overseas. Failure to comply can result in penalties.
HECS-HELP Repayment Calculator Australia 2024-25
How HECS-HELP debt repayment works in Australia
HECS-HELP is an Australian government loan scheme that allows eligible students to defer their higher education fees until their income reaches a repayment threshold. Unlike commercial student loans, HECS-HELP has no interest — instead, the debt is indexed annually to the Consumer Price Index (CPI) to maintain its real value. Repayments are income-contingent: you only repay when your income exceeds $54,435 (2024/25), and the repayment rate increases progressively from 1% to 10% as income rises. Your employer automatically withholds an additional amount from your salary once you declare a HECS-HELP debt on your tax file number declaration. The ATO reconciles the correct repayment amount when you lodge your annual tax return.
Strategies to manage and reduce your HECS debt
With CPI indexation adding thousands of dollars to HECS-HELP balances in recent years, many graduates are exploring strategies to repay their debt faster. Making voluntary repayments before 1 June each year reduces the principal subject to indexation, which can save a meaningful amount over time. For example, if you have a $30,000 debt and indexation is 5%, making a $5,000 voluntary repayment before 1 June saves $250 in indexation on that amount. Additionally, if you are in a high income year — perhaps from a bonus or sale of an asset — consider making a lump-sum voluntary repayment. However, weigh this against other uses of spare cash: if your mortgage interest rate exceeds the CPI rate, paying down home loan debt first may be more financially beneficial.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →