HECS-HELP repayments in 2026–27
The $69,528 threshold, the marginal system and what you'll repay at your income.
Key points
- No compulsory repayment on repayment income up to $69,528.
- Then 15c for each dollar above $69,528, rising to 17c above $129,717.
- On $90,000 you'd repay about $3,071 a year.
- Indexation on 1 June 2026 was 2.8%; HELP charges no interest.
- Salary sacrifice and rental losses don't reduce your repayment income.
If you have a HECS-HELP debt (or any other HELP, VSL or Australian Apprenticeship Support Loan), your employer withholds extra tax once your income passes the repayment threshold. For 2026–27 the threshold is $69,528, and repayments are worked out under the marginal system introduced in 2025–26. Here's what you'll repay and when it makes sense to pay more.
2026–27 repayment rates
| 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 total repayment income |
Under the old system, once you passed the threshold you repaid a percentage of your whole income, so a small pay rise could cost you more in HELP than it added. The marginal system removed that cliff: you repay only on the income above the threshold.
What you'll repay at each income
| Repayment income | Repayment for the year | About per fortnight | Share of income |
|---|---|---|---|
| $60,000 | $0 | $0 | 0.0% |
| $75,000 | $821 | $32 | 1.1% |
| $90,000 | $3,071 | $118 | 3.4% |
| $110,000 | $6,071 | $233 | 5.5% |
| $130,000 | $9,076 | $349 | 7.0% |
| $160,000 | $14,176 | $545 | 8.9% |
| $200,000 | $20,000 | $769 | 10.0% |
Your employer withholds this from each pay if you've ticked the HELP box on your tax file number declaration. The ATO works out the exact figure when you lodge your tax return, so you might get some back or owe a bit more.
What counts as repayment income
It's your taxable income plus reportable fringe benefits, total net investment losses (such as negative gearing losses), reportable super contributions (including salary sacrifice) and exempt foreign employment income. So salary sacrificing into super or a rental loss doesn't reduce your HELP repayment, even though it reduces your tax.
Indexation and the 20% cut
HELP debts don't charge interest, but the balance is indexed every 1 June. Indexation is now the lower of CPI and the Wage Price Index; it was 2.8% on 1 June 2026. On a $30,000 debt, that added about $840. Separately, a one-off 20% reduction was applied to HELP balances as they stood on 1 June 2025 (before that year's indexation). If you had a debt then, check your updated balance in myGov.
Should you pay it off early?
A voluntary repayment cuts your balance straight away and avoids future indexation on that amount. With indexation at 2.8% and no interest, it usually makes more sense to first:
- pay off credit cards, personal loans and car loans (often 10% to 20% interest)
- build an emergency fund
- put spare cash in a mortgage offset if you have one: at 6% or more, that saves far more than 2.8%
Paying HELP early can make sense if you're about to apply for a home loan. Lenders count your compulsory repayment as an expense, and a big balance with a small remainder may be worth clearing to lift your borrowing power. Get personal advice if you're unsure.
Common questions at tax time
- Two jobs? Only claim the tax-free threshold and tick HELP with your main employer. You may still have a HELP bill at tax time if both employers under-withhold.
- Moving overseas? You must keep repaying if your worldwide income is above the threshold, and update your details with the ATO.
- Income below the threshold? No compulsory repayment, but indexation still applies.
Frequently asked questions
What is the HECS repayment threshold for 2026–27?
$69,528. Below that you make no compulsory repayment. Above it you repay 15c for each dollar over the threshold, up to $129,717.
How much HECS will I repay on $90,000?
About $3,071 for the year, or roughly $118 a fortnight.
Is HECS indexed in 2026?
Yes. On 1 June 2026 HELP balances were indexed by 2.8%, the lower of CPI and the Wage Price Index.
Does salary sacrifice reduce my HECS repayment?
No. Reportable super contributions are added back to work out your repayment income.
Sources
- ATO: study and training loan repayment thresholds and rates
- ATO: study and training loans, what's new
- StudyAssist: loan repayments
More guides
Last reviewed October 2026. This guide is general information only. It isn't financial, tax, credit or legal advice and doesn't consider your circumstances. Rules change, so check the official sources below or speak to a licensed professional before you make a decision.