How are HECS-HELP repayments calculated?

HECS-HELP repayments are a percentage of your total repayment income (not just the amount above the threshold). The ATO rate increases as your income rises, from 1% at $54,435 to 10% above $151,200 for 2024-25. Your employer withholds this from your pay if you have ticked the HELP box on your TFN declaration.

When do I start repaying my HECS debt?

You start making compulsory repayments through the ATO tax system once your repayment income exceeds the minimum threshold ($54,435 for 2024-25). Repayments are collected either through PAYG withholding by your employer or when you lodge your tax return.

What is the HECS repayment threshold for 2024-25?

The ATO HECS repayment threshold for 2024-25 is $54,435. If your repayment income is below this amount, you make no compulsory repayments. Once your income exceeds $54,435, you pay 1% of your total income. The rate increases progressively up to 10% for incomes over $151,200.

Is HECS-HELP debt indexed?

Yes, your HELP debt is indexed annually on 1 June based on the Consumer Price Index (CPI) published by the ATO. This means your debt grows with inflation, but it does not accrue interest like a regular loan. In high inflation years, indexation can significantly increase your debt.

Can I make voluntary HECS repayments?

Yes, you can make voluntary repayments to the ATO at any time. Log in to myGov and select the ATO, then go to 'Make a payment' and choose 'HELP debt'. However, the government removed the 5% bonus for voluntary repayments from 1 January 2024.

What counts as repayment income for HECS?

ATO repayment income includes your taxable income, total net investment losses, reportable fringe benefits, reportable superannuation contributions, and any exempt foreign employment income. It is not the same as your taxable income. Check your ATO Notice of Assessment to see your repayment income.

Do I pay HECS if I work overseas?

Yes. If you are an Australian resident for tax purposes, you must repay your HELP debt based on your worldwide income. If you are a non-resident and earn exempt foreign employment income, this still counts toward your ATO repayment income.

How do I check my HECS debt balance?

Log in to myGov and link your ATO account. Your current HELP debt balance is shown on your ATO online account. You can also find it on your annual Notice of Assessment after you lodge your tax return. The ATO updates your balance after indexation each June 1.

Can HECS debt be written off?

Your HELP debt is written off (cancelled) if you die. Otherwise, it remains until fully repaid. There is no time limit, and bankruptcy does not discharge HELP debts. The only way to clear HECS debt is through compulsory or voluntary repayments to the ATO.

How does HECS affect my tax return?

If your repayment income exceeds the ATO threshold, a HECS repayment is added to your tax bill when you lodge your return. If your employer withheld the correct amount during the year, there is no additional payment. If not enough was withheld, you will owe the difference to the ATO.

Last updated: 11.04.2026

Australia · ATO HELP Rates 2024–25

HECS Debt Calculator 2026 | ATO Repayment Rates

Calculate HECS-HELP repayment with official ATO rates. 2024-25 thresholds from $54,435. Compulsory repayment calculator + voluntary payment guide.

This calculator provides estimates based on the published ATO HELP repayment thresholds for 2024–25. Actual repayments depend on your taxable income as assessed by the ATO. This is not financial advice. Consult a tax professional for your specific situation.

Calculate Your HECS RepaymentUpdates instantly

Enter your taxable income and HELP debt to see your compulsory repayment rate and amount.

Example: A$75,000 income, A$35,000 HECS debt

A$2,625/yrestimated annual repayment

3.5% repayment rate~14 years to repay

Enter your income and debt above for a precise calculation.

How to Calculate HECS Repayment with ATO Rates

The Australian Taxation Office (ATO) sets HECS-HELP repayment thresholds and rates each financial year. For the 2024-25 tax year, compulsory repayments start when your repayment income reaches $54,435.

Unlike other loans, HECS repayments are calculated as a percentage of your total repayment income, not just the amount above the threshold. The rate increases progressively from 1% to 10% as your income rises:

Repayment Income	ATO Repayment Rate
Below $54,435	Nil
$54,435 - $62,850	1.0%
$62,851 - $66,620	2.0%
$66,621 - $70,618	2.5%
$70,619 - $74,855	3.0%
$74,856 - $79,346	3.5%
$151,200+	10.0%

Use our ATO-compliant HECS calculator above to see exactly how much you will pay this year. The calculator uses the official 2024-25 repayment income thresholds published by the Australian Taxation Office.

HECS Debt Repayment Calculator vs ATO Official Calculator

Our HECS debt calculator uses the same repayment income thresholds and rates as the official ATO HELP repayment calculator. The advantage of our tool is instant results with a simple interface, no login required.

Your compulsory HECS repayment is calculated based on your repayment income, which includes:

Your taxable income
Total net investment losses
Reportable fringe benefits
Reportable superannuation contributions
Exempt foreign employment income

If you are employed, your employer withholds the estimated HECS repayment from your pay throughout the year (as long as you ticked the HELP box on your Tax File Number declaration). The ATO then calculates the exact amount when you lodge your tax return.

For example, if your repayment income is $75,000 in 2024-25, your compulsory HECS repayment is $75,000 × 3.5% = $2,625. This amount is withheld from your pay or collected when you lodge your return.

ATO HECS Repayment Thresholds 2024-25

The ATO updates HELP repayment thresholds annually to account for wage growth. For the 2024-25 financial year, the minimum repayment income is $54,435 (up from $51,550 in 2023-24).

Here is the full ATO HECS repayment threshold table for 2024-25:

Income Threshold	Repayment Rate	Example Repayment
$54,435	1.0%	$544
$62,851	2.0%	$1,257
$70,619	3.0%	$2,119
$79,346	3.5%	$2,777
$88,486	4.5%	$3,982
$100,174	5.5%	$5,510
$113,299	6.5%	$7,364
$128,406	7.5%	$9,630
$151,200	10.0%	$15,120

Check the ATO website for the most current rates, as these thresholds are adjusted each July 1.

HECS vs HELP: What's the Difference?

HECS (Higher Education Contribution Scheme) and HELP (Higher Education Loan Program) are often used interchangeably, but technically:

Loan Type	Full Name	Who It's For
HECS-HELP	Higher Education Contribution Scheme - HELP	Commonwealth-supported students (subsidized places)
FEE-HELP	Fee HELP	Fee-paying domestic students (full-fee places)
VET Student Loans	VET Student Loans	Vocational education and training
OS-HELP	Overseas Study HELP	Study overseas (discontinued)

All HELP debts use the same ATO repayment thresholds and rates. Whether you have HECS-HELP, FEE-HELP, or a combination, your total debt is repaid at the same rate based on your income.

As of 2024, the ATO refers to all education debts collectively as HELP debts. Your HECS debt repayment is calculated on your total HELP balance, not individual loan types.