You can make voluntary HECS-HELP repayments at any time — you do not have to wait until the end of the financial year. Voluntary repayments reduce your outstanding balance immediately and can help reduce the amount of indexation applied on 1 June.
How to Make a Voluntary HECS Repayment
Voluntary repayments are made directly to the ATO via BPAY or credit/debit card through the ATO’s online services.
Via myGov / ATO Online Services
- Log in to myGov and navigate to the ATO
- Go to Manage → Loan accounts
- Select your HECS-HELP account
- Choose Make a payment
- Follow the prompts to pay via credit/debit card or get BPAY details
Via BPAY
- Biller Code: 75556
- Reference number: Your Payment Reference Number (PRN) — shown in your ATO online account or on correspondence
Payments via BPAY are typically credited within 2–3 business days.
Minimum Voluntary Repayment
The minimum voluntary repayment is $500. You cannot make smaller ad hoc payments.
No Discount for Voluntary Repayments
Since 1 January 2017, there is no bonus or discount for making voluntary HECS repayments. A 5% bonus previously applied (so a $1,000 payment reduced the debt by $1,050), but this was abolished.
Voluntary repayments now reduce your balance dollar-for-dollar — nothing more.
Timing — The 1 June Indexation Deadline
The most tax-effective time to make a voluntary repayment is before 1 June each year. Indexation is calculated on the balance outstanding on 1 June — any repayment made before that date reduces the balance subject to indexation.
Example:
- Balance on 31 May: $45,000
- Expected indexation: 2.4%
- Without extra payment: $45,000 × 2.4% = $1,080 added
- $5,000 voluntary payment made 28 May: $40,000 × 2.4% = $960 added (saving $120)
For large balances, paying down a significant amount before 1 June can save hundreds of dollars in indexation.
Voluntary Repayments Do Not Replace Compulsory Repayments
Making voluntary repayments does not reduce your compulsory repayment for the year. The ATO calculates compulsory repayments based on your income — your employer withholds extra PAYG tax. Both amounts reduce your HECS balance.
If your voluntary payments reduce your balance to zero before your tax return is processed, the compulsory repayment amount from your return will result in a refund.
Non-Refundable
Voluntary repayments are non-refundable once credited to your HECS account. You cannot get the money back if your circumstances change. This is an important consideration before making large voluntary payments — ensure you have adequate cash reserves.
Related Articles
- HECS Indexation Explained
- Should You Pay Off HECS Early?
- How to Check Your HECS Balance
- HECS-HELP Australia hub
Frequently Asked Questions
How do I pay off my HECS debt early? Make voluntary repayments via BPAY or the ATO’s online services. The minimum payment is $500. Payments reduce your balance immediately.
Is there a discount for paying HECS early? No. The 5% bonus was abolished in January 2017. Voluntary repayments now reduce your balance dollar-for-dollar with no additional discount.
Can I get my voluntary HECS repayment back? No. Voluntary repayments credited to your HECS account are non-refundable. Make sure you have sufficient savings before making large voluntary payments.
This article provides general information about HECS-HELP for FY2025–26. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.