HELP and HECS repayments in 2026-27
Thresholds, marginal rates and worked examples for the 2026-27 income year (1 July 2026 to 30 June 2027).
The short version
If you have a HELP debt (often called a HECS debt), you start making compulsory repayments once your repayment income passes $69,528 in 2026-27. Below that, you repay nothing. Above it, you repay a percentage of only the income over each threshold, not of your whole income, until repayment income passes $186,050.
2026-27 repayment table
| Repayment income | Compulsory repayment |
|---|---|
| $0 - $69,528 | Nil |
| $69,529 - $129,717 | 15c for each $1 over $69,528 |
| $129,718 - $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
Source: ATO, compulsory repayment thresholds and rates. Last checked November 2026.
What counts as repayment income
Repayment income is not just your salary. The ATO adds together your taxable income, reportable fringe benefits, total net investment loss (including net rental losses), reportable super contributions and exempt foreign employment income. If you salary sacrifice into super or have a rental property running at a loss, your repayment income can be higher than your taxable income.
Worked examples (2026-27)
These assume repayment income equals the salary shown.
| Repayment income | HELP repayment | Per month |
|---|---|---|
| $60,000 | $0 | $0 |
| $70,000 | $71 | $6 |
| $80,000 | $1,571 | $131 |
| $90,000 | $3,071 | $256 |
| $100,000 | $4,571 | $381 |
| $120,000 | $7,571 | $631 |
| $130,000 | $9,076 | $756 |
| $150,000 | $12,476 | $1,040 |
| $200,000 | $20,000 | $1,667 |
How the $90,000 figure is worked out: $90,000 minus $69,528 is $20,472. Fifteen percent of $20,472 is $3,070.80, which rounds to $3,071.
How the $150,000 figure is worked out: $150,000 minus $129,717 is $20,283. Seventeen percent of that is $3,448.11. Add the $9,028 base amount for the bracket to get $12,476.11.
What changed from 2025-26
Since the 2025-26 income year the ATO calculates repayments on a marginal basis. Before that, reaching a threshold meant a percentage of your entire income was repaid, which created a cliff where a small pay rise could reduce take-home pay. Under the marginal system each extra dollar over a threshold is charged at the bracket rate only.
The 2026-27 thresholds are higher than 2025-26, when repayments started above $67,000.
| Bracket | 2025-26 | 2026-27 |
|---|---|---|
| Repayments start above | $67,000 | $69,528 |
| 17c bracket starts above | $125,000 | $129,717 |
| 10% of total income from | $179,286 | $186,051 |
How the repayment is collected
Your employer withholds extra tax from each pay when you tell them you have a study and training loan, using your tax file number declaration. The actual repayment is worked out when you lodge your tax return, and the ATO then reduces your HELP balance. If too much was withheld you get it back in your refund. If too little was withheld you may owe extra.
You can also make voluntary repayments at any time through the ATO. Voluntary repayments do not replace compulsory repayments, but they reduce your balance sooner.
Indexation
HELP debts are indexed each year on 1 June. The ATO publishes the rate on its website. Indexation is applied to the balance, so it does not change the repayment table above, but it does change how long the debt takes to clear.
Common questions
Is HELP repayment tax? No. It is collected through the tax system but reduces your loan balance. It is separate from income tax and the Medicare levy.
Does the repayment come out of every pay? It is withheld through the year as a percentage estimate, then settled in your tax return.
What if I work overseas? You still have to repay if you are an Australian resident for tax purposes or have overseas income above the repayment threshold. See the ATO guidance for living overseas.
Where can I see my balance? In your ATO online account through myGov.
See what it does to your pay
Use our take-home pay calculator for income tax and Medicare, then subtract the HELP repayment from the table above for a fuller picture. See also how income tax is calculated.
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