I’ve paid off most of my HECS debt, should I just repay the rest now?

Whether to repay your HECS-HELP debt early depends on a few key factors. Unlike most other debts, HECS doesn’t attract interest. Instead, it’s indexed each year based on the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). That said, because repayments are automat- ically made through your tax return once your income reaches the annual threshold ($54,435 for 2024–25), there’s no interest penalty for not paying it off sooner. If you’re not likely to earn significantly more in the near future or have other debts with higher interest rates, prioritising those in- stead may make more financial sense. However, if you have surplus savings and specific goals or obligations, voluntarily reducing or clearing your HECS could be worthwhile. Your financial adviser can help you weigh up whether repaying your HECS now aligns with your broader financial strategy