Why use this calculator
Understanding your HECS-HELP repayment obligations helps you plan your take-home pay and budget effectively. Repayments are compulsory once your income exceeds the minimum threshold and are automatically deducted through the tax system. This calculator helps you understand exactly how much will be withheld and how long it will take to repay your student debt.
How to use it
Enter your current HECS-HELP debt balance and your annual taxable income. The calculator uses the 2024-25 ATO repayment thresholds to determine your repayment rate and calculate your annual and monthly repayment amounts.
The formula
The ATO sets repayment rates based on income brackets. Your repayment is calculated as: Annual Repayment = Taxable Income x Repayment Rate. The rate ranges from 0% (below $54,436) to 10% (above $159,664) for 2024-25.
Worked examples
$35,000 HECS debt on $65,000 income
2% repayment rate, $1,300 annual repayment, approximately $108/month
$45,000 HECS debt on $95,000 income
5% repayment rate, $4,750 annual repayment, approximately $396/month
When people use it
- Planning take-home pay when starting a new job
- Understanding how a pay rise affects HECS repayments
- Deciding whether to make voluntary repayments
- Budgeting for the year knowing your compulsory repayment amount
Tips
- HECS-HELP debt is indexed annually to CPI, not charged interest in the traditional sense
- Voluntary repayments can reduce your debt faster but there is no financial benefit beyond reducing the balance
- Your repayment rate is based on your total taxable income including any investment income
- If you go overseas, you may still need to make repayments if your worldwide income exceeds the threshold
Questions people ask
- When do I start repaying HECS-HELP?
- Compulsory repayments begin when your repayment income exceeds the minimum threshold ($54,436 for 2024-25). Repayments are collected through the PAYG withholding system from your employer and reconciled in your annual tax return.
- Does HECS-HELP debt affect my credit score?
- No, HECS-HELP debt does not appear on your credit report and does not directly affect your credit score. However, lenders may factor it into serviceability assessments when you apply for a mortgage or personal loan.
- Is it worth making voluntary repayments?
- Since HECS-HELP is indexed to CPI rather than charged market interest rates, there is no discount or financial incentive for voluntary repayments. Your money may generate better returns invested elsewhere. However, reducing the debt can improve your borrowing capacity for home loans.