HECS-HELP indexation: 2.8% in 2026, and every rate since 2013
There is no interest on a HELP debt, but on 1 June each year the ATO multiplies the part owed for more than 11 months by an indexation factor. Since 2023 that factor is the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI).
| Year | Rate | Note |
|---|---|---|
| 1 June 2026 | 2.8% | |
| 1 June 2025 | 3.2% | |
| 1 June 2024 | 4.0% | Reduced from 4.7% (lower of CPI and WPI, applied retrospectively) |
| 1 June 2023 | 3.2% | Reduced from 7.1% (lower of CPI and WPI, applied retrospectively) |
| 1 June 2022 | 3.9% | |
| 1 June 2021 | 0.6% | |
| 1 June 2020 | 1.8% | |
| 1 June 2019 | 1.8% | |
| 1 June 2018 | 1.9% | |
| 1 June 2017 | 1.5% | |
| 1 June 2016 | 1.5% | |
| 1 June 2015 | 2.1% | |
| 1 June 2014 | 2.6% | |
| 1 June 2013 | 2.0% |
How the rate is worked out
Under s140-10 of the Higher Education Support Act 2003, the factor for 1 June is the lower of two ratios, each rounded to 3 decimal places:
- CPI factor: the sum of the CPI index numbers for the four quarters to 31 December just gone, divided by the same sum a year earlier;
- WPI factor: the same calculation with the Wage Price Index.
The indexed debt is then rounded down to whole dollars (s140-30). Voluntary repayments made before 1 June, and compulsory repayments assessed since the last 1 June, are deducted before the factor is applied (s140-5).
The 2023 and 2024 corrections
Indexation used to follow CPI alone. After inflation spiked, the 1 June 2023 rate was 7.1% and the 1 June 2024 rate 4.7%. The Universities Accord (Student Support and Other Measures) Act 2024 changed the factor to the lower of CPI and WPI, and applied the change to the financial year ending 30 June 2023 and every year after. Debts were recalculated: 2023 became 3.2% and 2024 became 4.0%.
What that meant for a $10,000 debt on 1 June 2022 with no repayments: after the 2023 and 2024 indexations it would have been $11,213 at the original rates, and is $10,732 at the corrected ones — $481 less, before the 20% reduction below.
The 20% debt reduction (2025)
The Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 cut every study and training loan that existed on 1 June 2025 by 20%. The cut was applied as at 1 June 2025, before that day’s 3.2% indexation, so indexation was also recalculated on the smaller balance. The ATO started processing it in late 2025 and has now completed it; accounts that went into credit were refunded where no other tax or Commonwealth debt was owed.
The ATO’s example: Maylin owed $110,000 on 31 May 2025 — $90,000 old enough to be indexed, plus $11,000 and $9,000 of new debts. The $90,000 became $72,000 and was indexed at 3.2% ($2,304 instead of $2,880). The new debts were cut to $8,800 and $7,200 and not indexed. Her balance after the reduction: $90,304.
The reduction was a one-off. Nothing in the current Act repeats it.
What $10,000 owed on 1 June 2022 became, with no repayments
| Date | Rate | Balance |
|---|---|---|
| 1 June 2023 | 3.2% | $10,320 |
| 1 June 2024 | 4% | $10,732 |
| 1 June 2025 | 3.2% | $11,075 |
| 1 June 2026 | 2.8% | $11,385 |
Indexation only; the 20% reduction on 1 June 2025 is not applied in this table, so it shows the effect of the rates alone.
Estimate only. Figures use the ATO’s published thresholds, rates and formulas. Your notice of assessment from the ATO is the only authoritative figure. This is not financial or tax advice. Read the disclaimer.
Frequently asked questions
What is the HECS indexation rate for 2026?
When is HECS indexation applied?
When is the next indexation rate announced?
How do I avoid indexation?
Did I get a refund for the 2023 indexation?
Official sources
- Study and training loan indexation rates — ATO, page updated 17 April 2026.
- View your study loan account online (indexation, 20% reduction) — ATO, page updated 3 June 2026.
- Loan increases and indexation — studyassist.gov.au (Department of Education), page updated 28 May 2026.
- Indexation of 2.8% will be applied to your study loan on 1 June 2026 — studyassist.gov.au (Department of Education), page updated 7 May 2026.
- Higher Education Support Act 2003 – compilation C2026C00297 (ss 140-5 to 140-30, 154-1 to 154-25) — Federal Register of Legislation, compilation in force from 1 July 2026.
- Universities Accord (Student Support and Other Measures) Act 2024, Schedule 1 (lower of CPI and WPI, from 1 June 2023) — Federal Register of Legislation, as made, text dated 5 December 2024.
- Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 — Federal Register of Legislation, assented to on 2 August 2025.
All pages checked on 29 September 2026.
Page updated .