HECS-HELP repayment thresholds for 2026–27
Since 2025–26, compulsory repayments work like a tax bracket: you only repay a share of the income above the threshold, not a percentage of everything you earn.
| 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 |
These thresholds also apply to VET Student Loans, the Australian Apprenticeship Support Loan and other study and training loans.
HECS repayments at common incomes
| Repayment income | Yearly repayment | Per fortnight | Share of income |
|---|---|---|---|
| $60,000 | $0 | $0 | 0.0% |
| $70,000 | $71 | $3 | 0.1% |
| $75,000 | $821 | $32 | 1.1% |
| $80,000 | $1,571 | $60 | 2.0% |
| $90,000 | $3,071 | $118 | 3.4% |
| $100,000 | $4,571 | $176 | 4.6% |
| $110,000 | $6,071 | $233 | 5.5% |
| $120,000 | $7,571 | $291 | 6.3% |
| $130,000 | $9,076 | $349 | 7.0% |
| $150,000 | $12,476 | $480 | 8.3% |
| $175,000 | $16,726 | $643 | 9.6% |
| $200,000 | $20,000 | $769 | 10.0% |
See your full take-home pay, including HELP, with our salary calculator.
How HECS indexation works
HELP debts don't charge interest, but on 1 June each year the balance is increased by an indexation rate so it keeps its real value. Since 2023 the rate is the lower of the consumer price index (CPI) and the wage price index (WPI). On 1 June 2026 it was 2.8%, the lowest since 2021.
Example: a $30,000 balance on 31 May 2026 became $30,840 on 1 June 2026 after 2.8% indexation.
The 20% HELP debt cut
The Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 became law on 2 August 2025. It cut HELP and other student loan balances by 20%, based on what people owed on 1 June 2025. The cut was applied before that year's indexation, and your myGov balance already reflects it.
Do voluntary repayments make sense?
Extra repayments shorten the time to pay off your debt and reduce future indexation. In the calculator's default example, a $30,000 debt on an $80,000 salary takes about 18 years with compulsory repayments only, but about 9 years with an extra $2,000 a year. Whether that's the best use of your money depends on your other debts and goals, as HELP has no interest charges.
Common questions
How much HECS do I repay in 2026–27?
It depends on your repayment income. Below $69,528 you repay nothing. Between $69,528 and $129,717 you repay 15 cents for every dollar above $69,528. From $129,717 to $186,050 it's $9,028 plus 17 cents per dollar above $129,717. Above $186,050 you repay 10% of your whole repayment income.
Did the HECS repayment system change?
Yes. From 2025–26, repayments are only charged on income above the threshold, like a tax bracket, instead of a percentage of your whole income. This means much lower repayments for most people just above the threshold. The 2026–27 threshold is $69,528.
What was the HECS indexation rate in 2026?
HELP debts were indexed by 2.8% on 1 June 2026, the lowest rate since 2021. Indexation is now set at the lower of the consumer price index (CPI) and wages growth (WPI).
Was my HECS debt cut by 20%?
If you had a HELP debt on 1 June 2025, it was reduced by 20% under a law passed in August 2025. The ATO applied the cut before that year's indexation. Check your current balance in myGov, as it already includes the reduction.
Should I make voluntary HECS repayments?
Extra repayments pay the debt off sooner and reduce the indexation added each year, but there's no interest on HELP debts, only indexation. If indexation is lower than your mortgage interest rate or other debts, paying those off first is often better. It's worth getting personal advice.
When are HECS repayments taken out?
Your employer withholds extra tax from your pay if you tell them you have a HELP debt. The compulsory repayment is then worked out in your tax return, and anything already withheld is credited.
What counts as repayment income?
Your taxable income plus reportable fringe benefits, total net investment losses, reportable super contributions and exempt foreign employment income. For most employees it's close to their salary.
Does HECS affect my home loan borrowing power?
Yes. Lenders count your compulsory HELP repayments as a regular expense, so a HELP debt can reduce how much you can borrow. Some lenders now look at the debt differently if it'll be repaid soon.
Sources
- ATO: study and training loan repayment thresholds and rates
- StudyAssist: 2026 HELP indexation
- HECS indexation 2026 explained
The repayment for 2026–27 uses the official ATO thresholds. The payoff projection is an estimate that assumes steady pay rises, indexation and threshold growth. Your actual result will differ. Check your balance and repayments in myGov.