If you have a HECS-HELP debt, every extra dollar you earn above the threshold is a partial tax — the compulsory repayment comes out of your pay alongside income tax. When you're weighing up whether to work an extra day, leaving HECS out of the calculation means overstating your take-home by hundreds (or thousands) of dollars.
NestWise's Extra Day Calculator factors HECS-HELP repayment into the answer directly. This guide explains how.
The good news: NestWise only needs to know IF you have a debt
You'll see a toggle on the Extra Day Calculator asking "Do you have a HECS-HELP debt?" — flick it on, that's it. We don't ask for your balance, and we don't ask for your repayment income separately.
Why? Because the ATO's compulsory HECS-HELP repayment is calculated entirely from your income, not your debt:
The same $80,000 salary triggers the same compulsory repayment whether your HELP balance is $5,000 or $50,000.
The debt amount only matters in one edge case — if the year's compulsory repayment would exceed your remaining balance (debt nearly paid off). For the overwhelming majority of users, that's not an issue. A Yes/No tick gives us all the info we need.
How the repayment scales with income (FY 2025-26)
Three tiers, each kicking in at a higher income:
| Repayment income | What you repay |
|---|---|
| Below $67,000 | $0 (no compulsory repayment) |
| $67,000 – $125,000 | 15c per $1 above $67,000 (marginal) |
| $125,000 – ~$190,000 | $8,700 + 17c per $1 above $125,000 |
| Above the top threshold | Flat 10% of TOTAL income (legislated discontinuity) |
Two examples to make it concrete:
- Repayment income $80,000 → repays 15% × ($80,000 − $67,000) = $1,950/yr
- Repayment income $130,000 → repays $8,700 + 17% × $5,000 = $9,550/yr
- Repayment income $200,000 → top-tier flat 10% × $200,000 = $20,000/yr
That last one is brutal — it's a flat 10% of the whole income, not just the marginal portion above the threshold. Crossing it via an extra day of work can be a genuinely bad move for HECS holders right at the top tier boundary.
What happens when an extra day pushes you over a threshold
The boundaries are where it gets interesting. Two real scenarios:
Crossing $67,000 (start of repayment)
- Today: $66,000 income, $0 HECS repayment
- After extra day: $68,000 income, 15% × $1,000 = $150 repayment
- The extra $2,000 attracts:
- Income tax (32% marginal rate at this band) → $640
- HECS-HELP repayment → $150
- Net of just $1,210 from a $2,000 gross extra day
Crossing $125,000 (tier 2 step-up)
- Today: $124,000 income, 15% × $57,000 = $8,550 HECS
- After extra day: $128,000 income, $8,700 + 17% × $3,000 = $9,210 HECS
- The extra $4,000 attracts: ~$1,480 income tax + $660 HECS = $1,860 take-home net of $4,000 gross
NestWise runs the HECS calc on both your before income and your after income, takes the difference, and subtracts it from the take-home figure alongside income tax + Medicare. The "Worth working an extra day?" answer reflects the real number, not the gross overstatement.
What HECS doesn't change
- Your CCS rate — unaffected (CCS is income-tested on ATI; HECS repayment doesn't reduce ATI).
- Your FTB-A and FTB-B — unaffected for the same reason.
- Your tax bracket — HECS is a separate repayment, not part of income tax. Your marginal rate is the same with or without a HECS debt; HECS adds on top.
So an extra day with HECS = the same FTB/CCS reduction PLUS the extra HECS repayment. The Extra Day Calculator shows the combined effect.
How to use the toggle
On the Extra Day Calculator at the top of the page you'll find:
- ☐ I have private hospital cover (drives MLS — see the MLS guide)
- ☐ I have a HECS-HELP debt
Tick whichever apply. The calculator re-runs and the take-home figure updates. You can toggle back and forth to see the impact of each — useful for understanding why two otherwise-identical families get different answers.
Why "repayment income" sometimes differs from your salary
The ATO's official "repayment income" includes a few additions on top of taxable income — reportable fringe benefits, reportable super contributions, net investment losses, foreign income. NestWise's Extra Day Calculator currently uses your taxable income for the HECS check, which is a small simplification. For:
- A salaried worker with no packaging, no investment property, no super sacrifice — these are exactly the same number.
- A worker with significant RFB (novated lease, etc.) or salary sacrifice — their actual ATO-calculated HECS repayment may be slightly higher than NestWise shows.
The gap is usually under 5% of the repayment amount. If it matters to you, run your full repayment-income figure through the ATO's HECS-HELP estimator after using NestWise's directional answer.
Use the NestWise Extra Day Calculator → Toggle the HECS-HELP option to see how compulsory repayment changes your real take-home when you work an extra day.