✅ Fact checked|🗓️ Updated: April 2026|✍️ FinSight Editorial Team|⚡ Free to use — no signup required
✓ REVIEWEDBy FinSight Editorial Team
Updated April 2026
General information only — not financial advice
How HECS/HELP Repayments Work
You only repay your HECS/HELP debt once your income reaches the minimum repayment threshold ($54,435 in 2025–26). Repayments are automatically deducted through the tax system — you don’t make manual repayments.
Each year, your remaining debt is indexed by CPI (inflation). In years with high inflation, indexation can add thousands to your balance — making early voluntary repayments potentially valuable.
💡 Tip: If your income is near a threshold boundary, even a small pay rise can increase your repayment rate significantly. Use the calculator to see the exact impact.
❓ Frequently Asked Questions
When do I have to start repaying my HECS/HELP debt?+
You start repaying your HECS/HELP debt automatically once your income reaches the minimum repayment threshold. For 2025-26 this is $54,435. Repayments are calculated as a percentage of your total income and are withheld through the tax system — you do not make manual repayments.
How does HECS/HELP indexation work?+
Each year on 1 June, your outstanding HECS/HELP balance is indexed by the Consumer Price Index (CPI). In high inflation years this can add thousands to your balance. In 2023 the indexation rate was 7.1%, adding significant amounts to balances. In recent years it has been around 3-4%.
Does HECS/HELP debt affect my ability to get a home loan?+
Yes. Lenders count your compulsory HECS repayments as a liability when assessing your borrowing capacity. A $30,000 HECS balance can reduce your borrowing power by $40,000–$80,000. You must declare your HECS debt on a home loan application.
Can I make voluntary HECS/HELP repayments?+
Yes. You can make voluntary repayments of any amount at any time via myGov or directly to the ATO. Voluntary repayments reduce your balance immediately, which reduces future indexation. However there is no bonus or incentive for early repayment since the 2017 removal of the 5% voluntary repayment bonus.
What happens to my HECS debt if I move overseas?+
Since 2017, Australians living overseas are required to make HECS repayments based on their worldwide income if it exceeds the repayment threshold. You must notify the ATO of your overseas income via a non-lodgment advice or tax return. Ignoring this can result in debt and penalties.
Is HECS/HELP debt wiped when I die?+
Yes. HECS/HELP debt is cancelled upon the death of the borrower. It is not passed on to the estate or family members. This is one key difference between HECS debt and private student loans or commercial debts.