How HECS/HELP repayments work in 2026-27
The way study-loan repayments are calculated changed to a marginal system, and the thresholds rose for 2026-27. Here is how much you will repay and when.
If you have a HECS or HELP debt, compulsory repayments are taken automatically once your income passes a threshold — you do not choose to pay, it happens through the tax system. For 2026-27 the thresholds rose and the calculation uses a marginal system. Here is how it works.
The marginal repayment system
Rather than one flat percentage on your whole income, repayments are now worked out on a marginal basis. For 2026-27 you repay 15c for each $1 over $69,528, plus 17c for each $1 over $129,717, and the total is capped at 10% of your repayment income — whichever is lower.
The 2026-27 thresholds
In plain terms: you pay nothing under $69,528; between $69,528 and $129,717 you pay 15c per dollar over $69,528; above $129,717 you pay $9,028 plus 17c per dollar over $129,717; and from $186,051 the flat 10% cap applies.
Worked example
James has a HELP debt and earns $90,000 of repayment income in 2026-27. His compulsory repayment is 15% of the amount over the threshold: 15% × ($90,000 − $69,528) = 15% × $20,472 = about $3,071 for the year. That is well under the 10% cap ($9,000), so the marginal figure applies.
What counts as "repayment income"
It is more than your salary — it is your taxable income plus certain add-backs such as reportable super contributions, reportable fringe benefits and net investment losses. So salary sacrifice can actually raise your repayment income for this purpose.
Indexation
Your outstanding debt is indexed once a year so it keeps pace with inflation. Recent changes tie indexation to the lower of the CPI or the Wage Price Index, which softened the big jumps seen in earlier years.
See HELP in your take-home
Our parental-leave calculator factors your HELP repayments into your whole-year take-home pay.
This is general information, not personal advice. Thresholds are reviewed each year.
Frequently asked questions
At what income do I start repaying HELP in 2026-27?
Compulsory repayments start once your repayment income passes $69,528. Below that, you pay nothing that year, though voluntary repayments are always allowed.
Does salary sacrifice affect my HELP repayment?
Yes — reportable super contributions are added back when working out your repayment income, so sacrificing can slightly increase your compulsory repayment even though it lowers your taxable income.
Can I pay my HELP debt off early?
Yes. Voluntary repayments can be made any time and reduce the balance that gets indexed. Whether that is the best use of your money depends on your other goals.
Is HELP debt indexed like interest?
It is indexed once a year to keep pace with inflation, now tied to the lower of CPI or the Wage Price Index. It is not charged interest in the usual sense.