HECS/HELP repayments in 2026–27, explained
How much you repay on your student debt this year, how the new marginal system works, and when it stops.
Last updated 3 November 2026
HECS-HELP is the government loan that covers your university fees. You don’t repay it until you earn enough, it charges no interest, and from 2025–26 the way repayments are worked out changed for the better. Here’s how it works in 2026–27 and how much you actually repay.
When repayments start
You begin repaying once your repayment income passes $69,528 (the 2026–27 threshold). Earn below that and there’s no compulsory repayment at all. The threshold is indexed, so it creeps up most years.
The new marginal system
The important change: you now repay only on the income above the threshold, not a percentage of your entire income. Under the old system, crossing a threshold applied a rate to your whole income, which could mean a pay rise left you worse off. The marginal method fixes that. For 2026–27:
- Up to $69,528 — nothing to repay.
- $69,528 to $129,717 — 15c for each dollar over $69,528.
- $129,717 to $186,050 — $9,028, plus 17c for each dollar over $129,717.
- Above $186,050 — a flat 10% of your total repayment income.
What you’d repay — examples
- $75,000 income: 15% of ($75,000 − $69,528) = 15% × $5,472 ≈ $821 for the year.
- $100,000 income: 15% × ($100,000 − $69,528) ≈ $4,571.
- $140,000 income: $9,028 + 17% × ($140,000 − $129,717) ≈ $10,776.
These are collected through the tax system — your employer withholds extra PAYG across the year, and it’s squared up when you lodge your return.
Repayment income is more than your salary
HECS is calculated on your repayment income, which is broader than taxable income. It adds back reportable fringe benefits, salary-sacrificed (reportable) super, net investment losses and some exempt foreign income. Salary-sacrificing into super to cut tax won’t necessarily cut your HECS repayment, because that super is added back.
No interest, but indexation
Your balance isn’t charged interest, but it’s indexed once a year (around 1 June) to keep its real value, based on the lower of CPI and wage growth. Indexation applies to the balance remaining after your compulsory repayments are credited, so paying down faster reduces what gets indexed.
See it against your pay
Our salary calculator includes the HELP repayment in your take-home pay, so you can see your net income with and without the student-loan component.
Figures are for the 2026–27 year. Thresholds and rates are set by the ATO and change annually — confirm the current figures on the ATO’s study and training loan repayment page before relying on them.
Work out your own numbers
Frequently asked questions
What is the HECS/HELP repayment threshold for 2026-27?
You start repaying once your repayment income exceeds $69,528 in 2026-27. Below that, no compulsory repayment is required. The threshold is indexed and rises most years.
How much HECS do I repay in 2026-27?
Under the marginal system, you repay 15c for each dollar of repayment income between $69,528 and $129,717; then $9,028 plus 17c per dollar above $129,717; and once income passes $186,050 you repay a flat 10% of your whole repayment income. You only pay on income above the threshold, not on your entire income.
Does my HECS debt charge interest?
No interest, but the balance is indexed once a year (around 1 June) to keep pace with inflation, based on the lower of CPI and wage growth. Indexation applies to what's left after your compulsory repayments are credited.
What counts as repayment income for HECS?
More than just your salary. Repayment income is your taxable income plus reportable fringe benefits, reportable (salary-sacrificed) super contributions, net investment losses and certain exempt foreign income. That's why your HECS repayment can be higher than you'd expect from your taxable income alone.