Is it worth paying extra off your HELP debt?
It’s a question many people ask once their pay settles in. Voluntary repayments are allowed any time through myGov or BPAY, and they reduce your balance straight away. They don’t earn a bonus any more, and the money can’t be taken back — so it helps to see what you actually save.
The calculator is set to a common situation: $90,000 repayment income, a $30,000 balance and $5,000 a year in voluntary payments, with 3% pay rises and 2.8% indexation. Your compulsory repayment is still $3,071 a year; the extra $5,000 comes on top.
What extra payments do (same person, $90,000, $30,000 debt)
| Extra per year | Debt cleared in | Total repaid | Saved vs. no extra |
|---|---|---|---|
| $0 | 10 years | $35,026 | $0 |
| $1,000 | 8 years | $33,638 | $1,388 |
| $2,000 | 7 years | $32,781 | $2,245 |
| $5,000 | 4 years | $31,528 | $3,498 |
| $10,000 | 3 years | $30,770 | $4,256 |
What you save is the indexation you avoid. HELP has no interest; each 1 June the balance grows by the lower of CPI and the Wage Price Index (2.8% in 2026). So paying early mostly saves you that yearly percentage — useful, but modest compared with, say, a 6% mortgage or a 20% credit card.
When extra payments make sense
- You’re close to clearing it. Finishing the debt stops future withholding and simplifies your tax.
- You’re about to apply for a home loan. Lenders treat your compulsory repayment as a monthly cost. Clearing a small balance can increase how much you can borrow.
- Pay just before 1 June. A payment made before indexation day avoids that year’s indexation on the amount you paid. Allow a few business days for it to reach the ATO.
When you might hold off
- You have credit card or personal loan debt — pay those first.
- You have a mortgage with an offset account: money there saves your home-loan rate and stays available if you need it.
- You don’t yet have an emergency fund of a few months’ expenses.
- Your income is near or below $69,528 and may stay there (for example, part-time work or a career break): you repay nothing compulsory in those years.
A gentle tip: whatever you decide, check your balance in myGov after 1 June each year. It shows the indexation added and the repayments credited, so you can see your progress.
This is general information, not financial advice. The projection assumes the pay-rise and indexation rates in the form; real indexation changes every year.
FAQ
Should I make voluntary HECS repayments?
It depends. Extra payments save only the yearly indexation (2.8% in 2026). Pay off higher-interest debts and build an emergency fund first; extra HELP payments make most sense before a home-loan application or when the balance is small.
How much do I save by paying $5,000 extra a year?
With $90,000 income and a $30,000 balance, the debt clears in about 4 years instead of 10 years, and you repay $31,528 instead of $35,026 — about $3,498 less.
When is the best time to make a voluntary HELP payment?
Before 1 June, so the amount you pay isn’t indexed that year. Payments take a few business days to reach the ATO, so don’t leave it to the last day.
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.