HECS / HELP repayment calculator.
Your compulsory student loan repayment under the marginal system that started on 1 July 2025 — for 2025–26 or 2026–27, with the thresholds that apply.
- Registered Tax Agent No. 26266813
- Regulated by the TPB
- CPA & IPA members on our team
The marginal repayment system.
Quick answer
From 1 July 2025 you repay 15% of repayment income above the threshold, 17% of income above a second step, and once income is high enough a flat 10% of total income. For 2026–27 the threshold is $69,528; below that nothing is repaid.
Repayment thresholds and rates
| Repayment income | 2025–26 | 2026–27 |
|---|---|---|
| Below the threshold | Nil (up to $67,000) | Nil (up to $69,528) |
| First band | 15c per $1 over $67,000, to $125,000 | 15c per $1 over $69,528, to $129,717 |
| Second band | $8,700 + 17c per $1 over $125,000, to $179,285 | $9,028 + 17c per $1 over $129,717, to $186,050 |
| Top | 10% of total repayment income from $179,286 | 10% of total repayment income from $186,051 |
The old system charged a percentage of your whole income the moment you crossed the threshold — a $1 pay rise could cost $500. The marginal system removes that cliff: only income above the threshold is counted.
Examples for 2026–27
| Repayment income | Repayment | Share of income |
|---|---|---|
| $65,000 | $0 | 0% |
| $75,000 | $821 | 1.1% |
| $90,000 | $3,071 | 3.4% |
| $110,000 | $6,071 | 5.5% |
| $150,000 | $12,476 | 8.3% |
| $200,000 | $20,000 | 10% |
Withholding versus the actual repayment
Employers withhold extra tax when you tick the study-loan box on your tax file number declaration. The ATO's withholding schedules approximate the annual repayment, but the real figure is calculated when your return is assessed and applied to your loan at that point. Two jobs, a mid-year pay rise or reportable amounts can leave a gap either way — which shows up as a bigger refund or an unexpected bill.
Indexation and voluntary repayments
HELP debts carry no interest but are indexed on 1 June each year to the lower of CPI and wage growth. Compulsory repayments are credited after indexation, so a voluntary repayment made before 1 June reduces the amount that gets indexed. Whether paying down a HELP debt early beats other uses of the money is a personal financial decision — we can show you the tax position.
Sources: ATO — Study and training support loans rates and repayment thresholds, Study and training support loans. General information only, not advice.
Two jobs, a HELP debt and a surprise bill?
We see it every year. A registered tax agent can check your withholding, report the right amounts and set up a payment plan with the ATO if you need one.
HELP — your questions.
How much HECS do I repay on $80,000?
For 2026–27, $1,570.80: 15% of the amount over the $69,528 threshold ($10,472 × 15%). For 2025–26 the threshold is $67,000, so the repayment on $80,000 is $1,950. Under the old system the repayment on $80,000 would have been 5% of the whole income — $4,000 — so the marginal system roughly halves it at this level.
What changed on 1 July 2025?
Two things. The repayment threshold rose from about $54,000 to $67,000, and repayments switched from a percentage of your total income to a marginal calculation on income above the threshold: 15% of income between the threshold and the first step, 17% above that. Separately, all HELP balances were cut by 20% on 1 June 2025. Thresholds are indexed each year — for 2026–27 the threshold is $69,528.
What counts as repayment income?
Taxable income plus reportable fringe benefits, reportable super contributions (salary sacrifice and other employer contributions above the guarantee), net investment losses and exempt foreign employment income. So salary sacrificing to super does not reduce your HELP repayment, and a negatively geared property increases it.
Why does my employer take out HECS if the repayment is only worked out at tax time?
When you tell an employer you have a study loan they withhold extra PAYG tax using the ATO's loan schedules, so the money is there when your return is assessed. The compulsory repayment itself is calculated on your tax return and applied to your loan then. If too much was withheld, it comes back in your refund.
Is there interest on a HELP debt?
No interest, but the balance is indexed each 1 June to the lower of CPI and the wage price index. Compulsory repayments made through your return are applied after indexation; voluntary repayments made before 1 June reduce the amount indexed.
Do I still have to repay if I move overseas?
Yes. If you live overseas for more than six months you must tell the ATO, report your worldwide income each year and make repayments on the same thresholds, converted to Australian dollars. Many people are caught out by this — ask us before you go.
Does this include VET Student Loans, SFSS and Trade Support Loans?
Yes. One compulsory repayment is calculated on your repayment income and applied to your loans in a set order: HELP first, then VSL, SFSS, SSL/ABSTUDY SSL and TSL. The calculator shows the total repayment, which is the same regardless of which loan types you hold.
More questions? See the full FAQ or ask us directly.
Keep going.
Pay calculator
Take-home pay after tax, Medicare, HELP and super.
Learn moreIncome tax calculator
Tax payable, Medicare levy, offsets and your refund.
Learn moreSuper calculator
Super guarantee at 12% and salary-sacrifice effects.
Learn moreIndividual tax returns
Salary, rental, shares & crypto
Learn moreYour return, lodged by a registered tax agent.
From $198 including GST, online, anywhere in Australia.