What is HECS indexation?
Indexation is an annual adjustment applied to the unpaid part of your HELP debt, on 1 June each year. It keeps the real value of the debt in line with inflation. Indexation applies only to the portion of your loan that has remained unpaid for more than 11 months.
Since the November 2024 changes, the indexation rate is the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), so your debt can no longer grow faster than wages. The 2026 rate is 2.8%.
When does indexation apply?
Indexation is applied on 1 June each year, to the part of your accumulated HELP debt that has been unpaid for more than 11 months. If you've paid off your entire debt before 1 June, no indexation applies. If you make a voluntary repayment, it reduces the balance that gets indexed.
Historical indexation rates
Recent ATO indexation rates: 2026: 2.8%, 2025: 3.2%, 2024: 4% (restated from 4.7%), 2023: 3.2% (restated from 7.1%), 2022: 3.9%, 2021: 0.6%, 2020: 1.8%. The 2024 and 2023 rates were restated following the lower-of-CPI-or-WPI legislative change.
How does indexation affect my repayment?
Indexation grows your loan balance, but your annual compulsory repayment is calculated on your repayment income, not your balance. To see what you'll repay at your income, use the calculator: use the HECS-HELP calculator.