When does your student debt actually disappear? Find out — with zero sugar-coating.
You start making compulsory repayments through the tax system once your repayment income exceeds the minimum threshold — $54,435 for the 2025-26 financial year. Repayments are calculated as a percentage of your total income (not just the amount above the threshold).
HECS-HELP debts are indexed annually on 1 June based on the Consumer Price Index (CPI). From 2023, indexation is capped at the lower of CPI or the Wage Price Index (WPI). In 2024, the indexation rate was approximately 4%. This means your debt grows each year if you're not repaying faster than it's being indexed.
Yes! You can make voluntary payments at any time through myGov/ATO. There used to be a bonus for voluntary payments over $500, but this was abolished in 2017. Voluntary payments still reduce your debt faster and save you from future indexation.
Yes. Lenders factor your HECS repayments into your borrowing capacity calculations. This effectively reduces the amount you can borrow for a home loan. The impact is proportional to your income and the repayment rate that applies.
HECS-HELP debt is written off upon death. It does not pass to your estate, family members, or anyone else. It is also written off if you become permanently incapacitated.
It depends on the indexation rate vs. investment returns. If indexation is 4% and you could invest at 7%, mathematically you're better off investing. However, reducing HECS improves borrowing capacity and provides certainty. There's no universal right answer — it depends on your goals.