$67,000
New repayment threshold
Up from $54,435. Earn below $67k? No compulsory repayment. Indexation still applies.
The 2025–26 income threshold jumped from $54,435 to $67,000 — over 3.2 million Australians now owe HECS debt. Know your exact repayment, effective rate, and payoff year.
ATO 2025–26 marginal brackets, CPI indexation, and voluntary repayment modelling — instant, private, free.
Use your total repayment income — salary, investment income, and reportable fringe benefits.
Enter your HECS balance and income, then click Calculate to see your compulsory repayment, effective rate, and full payoff timeline.
Three changes hit 3.2 million HECS debtors in 2025–26. Here is each one in 15 seconds:
Up from $54,435. Earn below $67k? No compulsory repayment. Indexation still applies.
15c/$1 on $67k–$125k, then 17c/$1 to $179k. Above $179k: 10% of total income. At $85k income the old system charged $3,825 — the new one charges $2,700 (−$1,125).
Every HECS/FEE/VET/OS/SA-HELP balance cut 20% automatically on 1 June 2025. Not recurring. Check your balance via myGov before calculating.
Indexed once a year on 1 June by the lower of CPI or WPI (ATO). Voluntary repayments before 1 June reduce the balance that gets indexed.
From 2025–26, HECS repayments use a marginal bracket system — you only pay on income above each threshold, similar to income tax. Applies to HECS-HELP, FEE-HELP, VET Student Loans, OS-HELP, SA-HELP and Australian Apprenticeship Support Loans.
| Repayment Income | Repayment Rate | Calculation | Max Repayment in Bracket |
|---|---|---|---|
| Below $67,000 | Nil | No compulsory repayment | $0 |
| $67,001 – $125,000 | 15% marginal | 15¢ per $1 over $67,000 | $8,700 |
| $125,001 – $179,285 | 17% marginal | $8,700 + 17¢ per $1 over $125,000 | $17,928 |
| $179,286 and above | 10% flat | 10% of total repayment income | No cap |