Tax Guide
HELP (HECS) Repayments in 2026-27: How the Marginal System Works
Since 1 July 2025, compulsory student loan repayments are calculated marginally — you only repay on the income above the threshold, not on your whole income. This removed the old “cliff” where a $1 pay rise could add hundreds of dollars to your repayment. The thresholds are indexed each year; here are the 2026-27 figures.
2026-27 repayment thresholds
| Repayment income | You repay |
|---|---|
| Up to $69,528 | Nothing |
| $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 |
| Over $186,050 | 10% of your total repayment income |
For comparison, the 2025-26 thresholds were $67,000 / $125,000 / $179,285. “Repayment income” is broader than taxable income — it adds back reportable fringe benefits, reportable super contributions, and net investment losses.
Worked examples (2026-27)
| Repayment income | Annual repayment | Roughly per fortnight |
|---|---|---|
| $69,528 or less | $0 | $0 |
| $80,000 | $1,570.80 | $60 |
| $100,000 | $4,570.80 | $176 |
| $140,000 | $10,776.46 | $414 |
Other things worth knowing
- A one-off 20% reduction was applied to HELP debt balances as at 1 June 2025.
- Your employer withholds an estimate through PAYG if you've told them you have a study loan; the actual repayment is settled when your tax return is assessed.
- Indexation is applied to the loan balance each 1 June at the lower of CPI or wage growth.
- Voluntary repayments can be made at any time and reduce the balance before indexation.
This applies to HELP, VET Student Loans, and other STSL debts. Figures are general information only — check the ATO's official thresholds and get personal advice from a registered tax agent.