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. Working out how much HECS you pay on your salary comes down to your repayment income and the ATO's thresholds for the year. This guide uses 2026-27 figures; for an instant answer use our free HECS debt calculator. Full threshold details are in our HECS repayment guide.

Step 1: Work out your repayment income

Repayment income is not the same as take-home pay. It is your taxable income plus reportable fringe benefits, reportable super contributions (including salary sacrifice), total net investment loss and exempt foreign employment income. For an employee with no packaging or investment losses it is usually close to gross salary. Salary sacrificing into super does not reduce it.

Step 2: Apply the marginal repayment rates

If your repayment income is $69,528 or less, you owe nothing. From there to $129,717 you repay 15 cents for each dollar above $69,528. Between $129,717 and $186,050 it is $9,028 plus 17 cents for each dollar above $129,717. Above $186,050 you repay 10% of your total repayment income.

Example: on $80,000 of repayment income, the amount above the threshold is $10,472. At 15 cents in the dollar the compulsory repayment is $1,571 for the year. On $150,000 it is $9,028 + 17 cents × $20,283 = $12,476.

Step 3: How much is withheld from your pay?

Your employer withholds an amount each pay using the ATO's withholding schedules. Divide the annual repayment by 26 for a rough fortnightly figure. If you have a second job or your income changes during the year, the total withheld may not match your actual compulsory repayment; the ATO squares it up when you lodge. Our pay calculator shows take-home pay with HECS included.

What a pay rise does to your repayment

Because the rates are marginal, a raise only adds repayments on the extra dollars. A $5,000 raise from $100,000 lifts the compulsory repayment from $4,571 to $5,321, an extra $750. The exception is crossing $186,050, where the repayment switches to 10% of total income.