If you studied with a HECS-HELP loan, you start repaying it through the tax system once your income passes a threshold. Here is how the repayments work in 2026–27, and what you can do to clear the debt sooner.
You only repay on income above the threshold
Since 1 July 2025, compulsory repayments use a marginal system, much like income tax. You pay nothing on the first $69,528 of repayment income in 2026–27. Above that you repay 15 cents in each dollar, rising to 17 cents above $129,717. Once repayment income passes $186,050, the old rule returns and you repay a flat 10% of your whole repayment income.
Before this change, crossing the threshold by a single dollar meant repaying a percentage of your entire income. The new system removes that cliff.
How much you'll repay at different incomes
| Repayment income | Repayment 2025–26 | Repayment 2026–27 | Per fortnight 2026–27 |
|---|---|---|---|
| $60,000 | $0 | $0 | $0 |
| $75,000 | $1,200 | $821 | $32 |
| $90,000 | $3,450 | $3,071 | $118 |
| $110,000 | $6,450 | $6,071 | $233 |
| $140,000 | $11,250 | $10,776 | $414 |
| $200,000 | $20,000 | $20,000 | $769 |
The threshold rises each year, so the same income leads to a slightly smaller repayment in 2026–27.
What counts as repayment income
Repayment income starts with your taxable income, then adds reportable fringe benefits, total net investment losses (including net rental losses), reportable super contributions and exempt foreign employment income. If you salary-sacrifice into super or negatively gear a property, your repayment income can be higher than your taxable income.
Indexation
Your HELP debt doesn't charge interest, but on 1 June each year the part of the balance that has been owing for more than 11 months is indexed. The rate on 1 June 2026 was 2.8%. A voluntary repayment made before indexation reduces the amount it applies to.
How the money comes out of your pay
If you tell your employer you have a study loan on your tax file number declaration, they withhold extra from each pay. The ATO then works out your exact compulsory repayment when you lodge your tax return, and any difference shows up in your refund or bill.
Work out your own numbers. The HECS-HELP payoff calculator shows this year's repayment and how many years until your debt is cleared.