Should I Pay Off My HECS?
Compare an extra HECS repayment before 1 June 2026 with keeping the money in savings, an offset or investments.
How this tool works
Reviewed 24 August 2026. 1 June 2026 indexation and 2025-26 repayment settings.
Calculation outline
- Estimates indexation avoided by a voluntary repayment that clears before 1 June, then compares it with one year of after-tax cash returns or offset savings.
- Estimates the compulsory repayment separately and caps repayments at the remaining study-loan balance.
Worked example
Example: a $10,000 voluntary repayment against debt eligible for 2.8% indexation avoids about $280 of that year’s indexation if processed before 1 June.
Limits
- This is a one-year comparison and does not model future income, new study debt, overseas obligations or future indexation rates.
- A voluntary repayment does not replace a compulsory repayment, and processing time can affect whether it clears before indexation.
Sources
- ATO study-loan repayment thresholds
- ATO study-loan indexation rates
- Department of Education HELP indexation arrangements
This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.