HECS-HELP repayment thresholds & rates 2026–27
In 2026-27, compulsory HECS/HELP repayments use the marginal system introduced in 2025-26. You repay nothing on repayment income at or under $69,528. Above that, you pay 15c for each dollar over $69,528, up to $129,717. From $129,717 to $186,050 you pay $9,028 plus 17c for each dollar over $129,717. Once your repayment income passes $186,050, the compulsory amount is 10% of your total repayment income. The marginal steps mean only the income above each threshold is charged at the higher rate, so crossing a threshold no longer lifts the rate on your whole income. Your employer withholds through the year, and the final amount is settled in your tax return.
| Repayment income | Repayment on this income |
|---|---|
| $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 your total repayment income |
What changed
The point where repayments start rose to $69,528 for 2026-27, up $2,528 from the 2025-26 threshold of $67,000. Indexation lifts the threshold each year, so more low and middle incomes fall under it. The band limits also moved: in 2026-27 the middle band runs to $186,050, and the second-band base is $9,028.
2026–27 against 2025–26
| Repayment income | 2025–26 | 2026–27 | Change |
|---|---|---|---|
| $60,000 | $0 | $0 | — |
| $85,000 | $2,700 | $2,321 | −$379 |
| $100,000 | $4,950 | $4,571 | −$379 |
| $150,000 | $12,950 | $12,476 | −$474 |
The repayment threshold was $67,000 in 2025–26 and $69,528 in 2026–27. On $85,000 the 2026–27 repayment is $2,321, $379 less than in 2025–26. On $100,000 the 2026–27 repayment is $4,571, $379 less than in 2025–26.
| 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 HELP repayment worked out in 2026-27?
- It uses a marginal scale. Nothing applies up to $69,528. You pay 15c per dollar from $69,528 to $129,717, then $9,028 plus 17c per dollar to $186,050, and 10% of total repayment income above that.
- How does this differ from the old flat system?
- Until 2024-25, a flat percentage of your total repayment income applied once you passed the threshold, across 18 bands from 1% to 10%. The 2026-27 marginal system charges the higher rates only on income above each threshold.
- What was the 20% HELP balance reduction?
- Around 1 June 2025 a one-off 20% cut was applied to all HELP balances. It reduced the debt you owe, not your yearly compulsory repayment, which depends on your repayment income and that year's scale.
- What counts as repayment income?
- It is your taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income. For a plain salary with none of those extras, repayment income equals your salary.