How to Calculate HECS Repayments on Your Salary

If you have a HECS or HELP debt, your employer withholds a compulsory repayment from your pay based on your income. Working out how much HECS you pay on your salary comes down to your “repayment income” and the ATO’s repayment thresholds and rates for the year. This guide walks you through how to calculate HECS repayments step by step—or you can use our free HECS debt calculator for an instant estimate. For threshold details, see our HECS repayment thresholds 2025-26.

Step 1: Work out your repayment income

Repayment income is not the same as your take-home pay. For most people it’s your taxable income plus: reportable fringe benefits, reportable super contributions, total net investment loss, and exempt foreign employment income. If you’re an employee with no side income or big deductions, it’s often close to your gross salary. The ATO uses this figure to decide which repayment bracket you’re in. When you use our pay calculator or HECS debt calculator, you enter your salary and we use it as a proxy for repayment income so you can see how much is withheld.

Step 2: Find the repayment rate for your income

Each financial year the government sets repayment thresholds and rates. Below the first threshold you pay nothing. Above it, you pay a percentage of your whole repayment income—not just the amount over the threshold. The percentage increases in steps (e.g. 1%, 2%, 3% up to 10% at the top). So if your repayment income is $70,000 and the rate for your bracket is 4%, your compulsory repayment is 4% of $70,000 = $2,800 for the year. Check the ATO for the exact 2025-26 thresholds and rates.

Step 3: How much is withheld from your pay?

Your employer uses your expected repayment income for the full year to work out how much to withhold each pay. So if you’re paid fortnightly, they divide the annual repayment by 26. If you have a second job or your income changes during the year, the total withheld might not exactly match your actual compulsory repayment—you’ll square it up when you lodge your tax return. Use our HECS debt calculator to see the estimated annual repayment at your salary; our pay calculator shows take-home pay after HECS.

Why the percentage is on your whole income

Unlike income tax brackets, HECS repayment rates apply to your total repayment income once you’re above the threshold. So a small pay rise can push you into a higher bracket and increase the amount withheld by more than you might expect. It’s worth checking how a raise or bonus affects your HECS. Our HECS debt calculator lets you try different salary levels to see the impact.

Summary: calculate HECS on your salary

To calculate HECS repayments on your salary: (1) work out your repayment income (often close to gross salary), (2) find the ATO repayment rate for your income bracket, (3) multiply your repayment income by that rate to get the annual repayment. Your employer withholds this over the year. For a quick result, use our free HECS debt calculator or pay calculator with HECS turned on.