HECS-HELP repayment calculator
The rules changed twice in two years: a 20% debt cut, a much higher threshold, and a new marginal system. Many calculators online still use the old flat rates.
Taxable income plus reportable super contributions, fringe benefits and net investment losses.
Find this in myGov under ATO, study and training loan accounts.
Compulsory repayment — 2026-27
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2026-27 repayment rates
| Repayment income | You repay |
|---|---|
| Up to $69,528 | Nothing |
| $69,529 to $129,717 | 15c for each $1 over $69,528 |
| $129,718 to $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
These rates apply to HECS-HELP, FEE-HELP, VET Student Loans, SA-HELP and OS-HELP debts.
What you repay at different incomes
| Repayment income | Per year | Per fortnight | Effective rate |
|---|---|---|---|
| $65,000 | $0 | $0 | 0.00% |
| $70,000 | $71 | $3 | 0.10% |
| $80,000 | $1,571 | $60 | 1.96% |
| $90,000 | $3,071 | $118 | 3.41% |
| $100,000 | $4,571 | $176 | 4.57% |
| $120,000 | $7,571 | $291 | 6.31% |
| $130,000 | $9,076 | $349 | 6.98% |
| $150,000 | $12,476 | $480 | 8.32% |
| $190,000 | $19,000 | $731 | 10.00% |
Why the old "debt cliff" is gone
Under the old system, crossing the threshold by one dollar triggered a repayment on your entire income. Someone earning $1 more could lose hundreds of dollars. The marginal system fixed that. Now, earning $70,000 instead of $69,528 means repaying 15% of the difference only, which is $71 a year.
The three changes people miss
- The 20% cut was automatic. It applied to balances as at 1 June 2025, before indexation. You did not need to apply, and many people have not checked their new balance.
- The threshold jumped a long way. It went from $54,435 in 2024-25 to $67,000, and now to $69,528. Around 80,000 people stopped making compulsory repayments entirely.
- Withholding changed from your first July payslip. The ATO updated its study loan withholding formulas, so the amount taken from your pay moved even if your salary did not.
Common questions
What is the HECS repayment threshold for 2026-27?
$69,528. If your repayment income is at or below that, you make no compulsory repayment. The threshold rose from $67,000 after 2.8% indexation.
How does the marginal repayment system work?
You only repay on the income above the threshold, not on your whole income. It works like tax brackets. You pay 15c per dollar between $69,529 and $129,717, then $9,028 plus 17c per dollar above $129,717. Once your income reaches $186,051, a flat 10% of your total income applies instead.
Was my HECS debt really cut by 20%?
Yes. A one-off 20% reduction was applied automatically to all outstanding HELP balances as at 1 June 2025. No application was needed. On a $34,000 debt that is a $6,800 cut. Check your balance through myGov.
Does HECS charge interest?
No interest, but the balance is indexed on 1 June each year to keep pace with inflation. Since 2023 the indexation rate is the lower of CPI and the Wage Price Index.
Does salary sacrificing into super reduce my HECS repayment?
No, and this catches a lot of people. Repayment income adds back reportable super contributions, reportable fringe benefits and net investment losses. Salary sacrifice lowers your income tax but not your compulsory HECS repayment.
Should I pay my HECS off early?
That is a personal decision and this page cannot advise you. The debt carries no interest, only indexation, so it is usually one of the cheapest debts a person can hold, and many people weigh that against a mortgage or other higher-cost debt. A licensed financial adviser can look at your full situation.
See your full take-home pay with HECS included →
Source: ATO study and training loan repayment thresholds and rates for 2026-27, checked 28 July 2026. Estimates only, not financial advice. Confirm your balance and repayment with the ATO through myGov.