How HECS-HELP repayments work now
Updated 26 September 2026 · figures from the ATO and official sources
Your HELP debt isn’t like a normal loan. There’s no interest and no fixed repayment. You repay through the tax system once your income is high enough.
The marginal system
Since 1 July 2025, compulsory repayments are charged only on the part of your income above the threshold. In 2026–27:
- Below $69,528: nothing.
- $69,528 to $129,717: 15 cents for each dollar above $69,528.
- $129,717 to $186,050: $9,028 plus 17 cents for each dollar above $129,717.
- Above $186,050: 10% of your total repayment income.
| Repayment income | Yearly repayment | Per fortnight | Share of income |
|---|---|---|---|
| $65,000 | $0 | $0.00 | 0% |
| $75,000 | $821 | $31.57 | 1.1% |
| $85,000 | $2,321 | $89.26 | 2.7% |
| $100,000 | $4,571 | $175.80 | 4.6% |
| $130,000 | $9,076 | $349.08 | 7% |
| $160,000 | $14,176 | $545.24 | 8.9% |
| $200,000 | $20,000 | $769.23 | 10% |
What counts as repayment income
It’s more than your taxable income. The ATO adds reportable fringe benefits (for example an FBT-exempt electric car on a novated lease), reportable super contributions such as salary sacrifice, net investment losses (like negative gearing) and exempt foreign income. So salary sacrificing doesn’t reduce your HECS repayment.
How it’s collected
If you tell your employer you have a study loan, they withhold extra tax each pay. The exact amount is worked out when you lodge your tax return, and any difference is added to your bill or your refund.
Indexation
Your balance is indexed each 1 June. Indexation is now the lower of CPI and wage growth, which keeps it closer to inflation than before.
Should you pay it off early?
Voluntary repayments reduce your balance straight away. Whether it’s worth it depends on indexation compared with what your money could earn elsewhere, such as in an offset account or super. There’s no penalty either way.
General information only, not financial or tax advice. See our disclaimer.