From FY2025-26, HECS/HELP repayments switched from a percentage of your total income to 15% of income above a $67,000 threshold. Find out if you pay more or less.
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The ATO applied a 20% debt reduction to all HECS balances on 1 June 2025. Enter your post-reduction balance.
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What changed?
Previously you repaid a percentage of your total income once above a threshold. The new system charges 15% only on income above $67,000 — so at $80k, you repay 15% of $13,000 ($1,950) instead of 3.5% of $80,000 ($2,800).
Who benefits?
People with incomes roughly $67k–$110k generally pay less. Above ~$115-120k, the new 15% marginal rate on a larger excess amount becomes more expensive than the old bands.
What was the 20% debt reduction?
A one-off 20% cut to all HECS/HELP balances was applied automatically by the ATO on 1 June 2025 as part of the higher education reforms.
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