Question 1

When do I start repaying my HECS-HELP debt?

Accepted Answer

You start repaying your HECS-HELP debt once your repayment income exceeds the minimum threshold, which is $67,000 for the 2025-26 financial year. Repayments are automatically deducted from your salary through the PAYG system using the new marginal repayment system.

Question 2

How much of my salary goes to HECS repayments?

Accepted Answer

From 2025-26, HECS uses a marginal repayment system. You pay 15% on income above $67,000 (up to $125,000), then $8,700 plus 17% on income above $125,000, capped at 10% of total income for those earning over $179,286.

Question 3

What is HECS indexation and how does it affect my debt?

Accepted Answer

HECS indexation is applied on 1 June each year and increases your debt based on inflation (CPI or Wage Price Index, whichever is lower). This maintains the real value of the debt. Unlike interest, indexation doesn't compound - it only applies to your remaining balance.

Question 4

How long does it take to pay off HECS debt?

Accepted Answer

The time to pay off HECS debt depends on your income and debt amount. A $30,000 debt on a $70,000 salary typically takes 8-12 years. Higher salaries mean faster repayment due to higher repayment rates. Use our calculator to get a personalized estimate.

Question 5

Should I make voluntary HECS repayments?

Accepted Answer

Voluntary repayments reduce your balance before indexation is applied, but there's no discount for early repayment. Since HECS has no interest (only indexation), many financial advisors suggest investing extra money elsewhere for potentially higher returns rather than paying off HECS early.