HECS Debt Refund Calculator
HECS-HELP repayments work a little differently than other loans. You don’t get a lump sum refund if you overpay. Instead, any extra payments reduce your overall HECS debt, meaning you pay it off faster and potentially pay less interest in the long run.
However, there are tools and calculators that can help you understand your HECS debt and repayments:
1. ATO online services:
- Your MyGov account: This is the most accurate source of your HECS debt information. You can log in to see your current balance, repayment history, and make voluntary repayments.
2. HECS Repayment Calculators:
- Online calculators (like those from One Click Life, Investax, and Pay Calculator): These calculators can help you estimate your compulsory repayments based on your income. They can also show you how voluntary repayments can affect your overall debt and repayment timeline.
- ATO’s repayment tables: The ATO publishes repayment tables that show the repayment rates for different income brackets. This can give you a general idea of how much you’ll be repaying.
3. Speaking with a financial advisor:
- Professional advice: A financial advisor can provide personalized guidance on managing your HECS debt, considering your individual circumstances and financial goals.
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Key things to remember about HECS repayments:
- Compulsory repayments: These are automatically deducted from your pay if you earn above the repayment threshold.
- Voluntary repayments: You can make extra payments at any time to reduce your debt faster.
- Indexation: Your HECS debt is indexed annually in line with inflation. This means the amount you owe increases slightly each year.
By understanding your HECS debt and using the available tools, you can make informed decisions about your repayments and work towards becoming debt-free sooner.
How much will my compulsory repayment be?
The more you earn, the higher your compulsory repayment will be.
When you complete your tax return, the ATO will calculate your income for the year and tell you how much your compulsory repayment is.
| 2024-2025 Repayment threshold | 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% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,185 | 6.0% |
| $106,186 – $112,556 | 6.5% |
| $112,557 – $119,309 | 7.0% |
| $119,310 – $126,467 | 7.5% |
| $126,468 – $134,056 | 8.0% |
| $134,057 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 and above | 10.0% |
For example
Zichen has commenced full-time work as a first-year solicitor, earning an annual salary of $69,300.
His compulsory repayment will be $1,732.50 which is 2.5% of his salary.
How is your annual income calculated for the purpose of the compulsory repayment?
Your annual income before tax is used to calculate your compulsory repayment.
However, it is not only the income from your employment that is used to calculate your compulsory repayment. It also includes income from other sources, such as from any investments. The Australian Taxation Office (ATO) calls this your repayment income.
