Australia’s HECS-HELP scheme lets university students defer tuition fees, repaying once income crosses a threshold. With average student debt over $26,000 and annual indexation, understanding how HECS works is critical for your budget and home loan application.
2025–26 HECS Repayment Thresholds
| Income | Rate |
|---|---|
| Below $54,435 | Nil |
| $54,435–$62,850 | 1.0% |
| $70,619–$74,855 | 3.0% |
| $83,888–$88,650 | 4.5% |
| Over $137,897 | 10.0% |
HECS Indexation
HECS debt is indexed to CPI each year on 1 June. In 2023 debts rose 7.1%. The government has since capped indexation at the lower of CPI or wage growth.
Should You Pay Off HECS Voluntarily?
Unlike a credit card, HECS only grows by CPI — not compound interest. If your mortgage rate is higher than CPI, pay the mortgage first. If CPI is running hot, extra HECS repayments can make sense.
Calculate Your HECS Repayments
See exactly how much you repay this year based on your income.
HECS/HELP Calculator 2025–26 →Income Tax Calculator — Take-Home After HECS →
Disclaimer: General information only. Not financial or legal advice. Consult a qualified professional before making decisions.