The Property Couch The HECS Trick That Could Boost Your Borrowing Power by $100K!!! | FUNdamental Fridays
May 1, 2026
Danish Ahmed, senior tax specialist who helps with HECS/HELP strategies and personal tax planning. He explains a time-sensitive HECS move that can free up $662 a month. Paying down HECS before indexation could trigger a big tax refund. Clearing debt may also lift your borrowing power by roughly $80k–$100k, but timing and professional advice are crucial.
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Pay HECS Lump Sum Before 1 June
- Do pay down your HECS/HELP balance as a lump sum before 1 June to avoid indexation applying to the remaining balance.
- Danish Ahmed used a $15,000 example reduced to $12,000 after a 20% government cut and warned indexation of 2.8% starts 1 June.
Real Example With $120k Income And $12k HECS
- Danish Ahmed ran a concrete example: Ben earning $120,000 with an original $15,000 HECS reduced to $12,000 after a 20% government cut.
- He calculated annual HELP repayments about $7,950 and PAYG paid to date roughly $7,260.
Early Repayment Unlocks Refund And Monthly Cash
- Paying your HECS balance early can unlock both a tax refund and extra monthly cash flow immediately after lodging your return.
- In the example Ben already paid $7,260 via PAYG so clearing the $12,000 balance returns that and frees about $662/month.