per year
2026 rate: 2.8%
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Years to Debt-Free
~9 years
paid off in 2034-35
Total You Will Repay
$31,907.06
Indexation Added
$4,307.06
20% Cut Removed
$6,900.00
| Without the Cut | With the Cut | |
|---|---|---|
| Starting balance | $34,500.00 | $27,600.00 |
| Years to debt-free | 10 | 9 |
| Total repaid | $40,896.36 | $31,907.06 |
Debt Removed by the Cut
$6,900.00
Years Saved
~1 year
The one-off 20% cut was applied to balances as at 1 June 2025, before that year's indexation. The ATO applied it automatically.
| Income Range | Rate | Max Repayment |
|---|---|---|
| Below $69,528.00 | 0% | $0.00 |
| $69,528.00 -- $129,717.00 | 15c per $1 over $69,528.00 | $9,028.35 |
| $129,717.00 -- $186,050.00 | 17c per $1 over $129,717.00 | $18,604.96 |
| $186,050.00+ | 10% of total income | Varies |
What is the one-off 20% HELP debt cut?
In 2025 the government cut every HELP and student loan balance by 20%. The cut used your balance as at 1 June 2025, before indexation was added that year. The ATO applied it automatically — you did not need to do anything. Most people saw the credit by the end of 2025.
How does indexation work now?
Your debt goes up once a year, on 1 June. The rate is the lower of two measures: CPI (prices) or WPI (wages). On 1 June 2026 the rate was 2.8%. HELP debt has no interest — only this yearly indexation.
How are repayments worked out?
Repayments now use a marginal system. For 2026-27 you pay nothing on income up to $69,528. You pay 15 cents for each dollar between $69,528 and $129,717, plus 17 cents for each dollar between $129,717 and $186,050. Above $186,050 you pay 10% of your whole repayment income.
Why might my debt grow even though I am working?
If your yearly repayment is smaller than the indexation added on 1 June, your balance rises. This can happen when your income is close to the repayment threshold and indexation is high.
When do my repayments actually come off my debt?
Money taken from your pay is held by the ATO during the year. It only comes off your balance after your tax return is assessed. That is why this calculator applies indexation before each year’s repayment is credited.
Should I make extra voluntary repayments?
You can pay extra at any time. Paying before 1 June shrinks the balance that gets indexed. Whether it is worth it depends on your other debts and savings — HELP debt has no interest, so higher-rate debts usually come first.
ATO-Aligned: Uses the 2026-27 marginal repayment thresholds, the legislated one-off 20% debt reduction, and the lower-of-CPI/WPI indexation rule (2.8% on 1 June 2026).
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2026–27 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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