On 1 June 2026, HECS/HELP debts were indexed by 2.8%. Indexation keeps the real value of the debt constant with the cost of living — it isn't interest, but it does grow your balance.
Two things make the current rate lower than people fear:
1. It's the lower of CPI and WPI. Since a 2023 change (backdated to 1 June 2023), indexation is whichever is smaller — the Consumer Price Index or the Wage Price Index. In high-inflation years that cap matters a lot.
2. It only hits debt older than 11 months. Amounts you've recently paid or that were added in the last 11 months aren't indexed on the next 1 June.
| Year (1 June) | Rate |
|---|---|
| 2026 | 2.8% |
| 2025 | 3.2% |
| 2024 | 4.0% |
| 2023 | 3.2% |
| 2022 | 3.9% |
| 2021 | 0.6% |
Indexation lands on 1 June, but your compulsory repayments for the year are only credited when your tax return is assessed weeks later. So your balance goes up on 1 June even though money has been coming out of every pay. That surprises people every year — here's the full order of events.
A voluntary payment before 1 June escapes that year's indexation on the amount paid. At 2.8%, paying $5,000 in May saves $140 of indexation. Whether that beats investing the $5,000 depends on your expected return — we compare both paths here, and the payoff planner runs the numbers for your balance.