How long will my HELP debt take to pay off?
The honest answer: it depends mostly on your income, not just on how big the debt is. Because you only repay on income above $69,528, two people with the same $40,000 debt can finish decades apart. Let’s look at a typical case.
The calculator is set to $85,000 repayment income and a $40,000 balance, with 3% pay rises (thresholds rising at the same pace) and 2.8% yearly indexation.
- First-year compulsory repayment: 0.15 × $15,472 = $2,321.
- First indexation on 1 June: roughly 2.8% × $40,000 ≈ $1,120.
- So in the early years your balance falls only about $1,200 a year. As your pay grows, repayments speed up.
- Estimated payoff: about 18 years (total repaid $52,177 · paid off around 2044-45).
Same $40,000 debt, different incomes
| Repayment income | Repayment in 2026-27 | Debt cleared in | Total repaid |
|---|---|---|---|
| $75,000 | $821 | 48 years | $85,205 |
| $80,000 | $1,571 | 26 years | $59,104 |
| $85,000 | $2,321 | 18 years | $52,177 |
| $90,000 | $3,071 | 14 years | $49,005 |
| $100,000 | $4,571 | 9 years | $46,013 |
| $120,000 | $7,571 | 6 years | $43,775 |
| $150,000 | $12,476 | 4 years | $42,494 |
The difference is striking. Just above the threshold, repayments barely beat indexation, so the debt lingers. At $120,000 or more it clears in a handful of years.
Why the estimate can change
- Pay rises: each raise adds 15c or 17c per extra dollar to your repayment. Bigger raises mean a faster payoff.
- Thresholds are indexed each year. If they rise faster than your pay, you repay a little less.
- Indexation: 2.8% in 2026, 3.2% in 2025 and 4.0% in 2024. A lower rate helps you.
- Breaks: in years your income is below the threshold (parental leave, study, part-time work) you repay nothing, but indexation still applies.
- Moving overseas: you still have to report your worldwide income to the ATO and make repayments.
Ways to shorten it
The calculator lets you test two levers. Add a voluntary payment of even $1,000 a year and watch the years drop, or raise the pay-rise percentage to see the effect of a promotion. Small changes early on have the biggest effect, because they reduce the balance that gets indexed every year.
Does HELP debt ever disappear?
Only in limited cases — for example, it’s cancelled on death. There’s no time limit after which it’s written off, so it’s worth having a plan, even a relaxed one.
Projection only. Future thresholds and indexation are not yet published; change the growth rates in the form to test your own scenario.
FAQ
How long does it take to pay off $40,000 HECS on $85,000?
About 18 years with 3% pay rises and 2.8% indexation (total repaid $52,177 · paid off around 2044-45). The first-year compulsory repayment is $2,321.
Why is my HECS debt not going down?
If your repayment income is just above $69,528, your compulsory repayment can be close to the yearly indexation. For a $40,000 balance, indexation at 2.8% is about $1,120 a year.
Does HECS debt get written off after a certain time?
No. There’s no time limit. The debt is only cancelled in limited cases, such as death. You repay nothing in years your income is below the threshold.
Sources (checked 5 Nov 2026): ATO, “Study and training support loans rates and repayment thresholds” (ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds), Tables 1 (2026-27) and 2 (2025-26); ATO, “Study and training loan indexation rates” (2.8% on 1 June 2026); ATO newsroom, “Study and training support loan changes are now law” (Aug 2025). Cross-checked with the site’s 2026-27 pay calculator and independent HELP calculators.