HECS-HELP repayment thresholds & rates 2025–26
2025-26 was the first year HECS and HELP used the marginal repayment system, so it sets the rates your 2025-26 return uses. If your repayment income was $67,000 or less, you repaid nothing. Above $67,000, you repaid 15c for each dollar between $67,000 and $125,000. From $125,001 to $179,285, you repaid $8,700 plus 17c for each dollar over $125,000. Above $179,285, the repayment was 10% of your total repayment income. From 2025-26 the rate applies only to income above the threshold, not to every dollar you earned. That is the shift from the old flat-percentage method.
| Repayment income | Repayment on this income |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c for each $1 over $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of your total repayment income |
What changed
Two things changed. The threshold where repayments start rose from $54,435 to $67,000. And the method changed from a flat percentage of your total income to a marginal rate on income above the threshold. Most people repaid less. On $85,000, the repayment fell from $3,825 under the 2024-25 flat system to $2,700 in 2025-26. Separately, a one-off 20% reduction was applied to HELP balances around 1 June 2025.
2025–26 against 2024–25
| Repayment income | 2024–25 | 2025–26 | Change |
|---|---|---|---|
| $60,000 | $600 | $0 | −$600 |
| $85,000 | $3,825 | $2,700 | −$1,125 |
| $100,000 | $5,500 | $4,950 | −$550 |
| $150,000 | $13,500 | $12,950 | −$550 |
The repayment threshold was $54,435 in 2024–25 and $67,000 in 2025–26, and the method changed from a flat to a marginal scale. On $60,000 the 2025–26 repayment is $0, $600 less than in 2024–25. On $85,000 the 2025–26 repayment is $2,700, $1,125 less than in 2024–25.
| Year | System | Threshold |
|---|---|---|
| 2024–25 | Flat % of total income | $54,435 |
| 2025–26 | Marginal, on income above the threshold | $67,000 |
| 2026–27 | Marginal, on income above the threshold | $69,528 |
Other years
Work out your own repayment with the HECS/HELP calculator, or see the effect on full take-home pay for a salary, e.g. $85,000.
Frequently asked
- How is my 2025-26 HELP repayment worked out?
- It uses the marginal method. You repay nothing up to $67,000, then 15c per dollar to $125,000. From $125,001 the repayment is $8,700 plus 17c per dollar to $179,285, then 10% of total income above that.
- Why is my 2025-26 repayment lower than 2024-25?
- The threshold rose from $54,435 to $67,000, and from 2025-26 the rate applies only to income above it, not your whole income. On $85,000, that cut the repayment from $3,825 to $2,700.
- Did the 20% cut change my repayment?
- No. The one-off 20% reduction around 1 June 2025 cut your HELP balance, not your yearly repayment. Your 2025-26 repayment is worked out from your repayment income using the marginal rates.