HECS Repayment 2026–27: Threshold, Rates & Examples
CalculatorQuest Editorial Team
Australian Tax & Finance Specialists
If you have a HECS-HELP (or other study) debt, compulsory repayments are collected through the tax system once your repayment income reaches $67,000. This 2026–27 guide explains the threshold, the rate bands used in our calculators, and what typical salaries repay — then points you to tools to model your own numbers.
Instant estimate: HECS debt calculator or include HECS in the pay calculator.
Compulsory repayments start at $67,000 repayment income. Rates rise in bands up to 10% of repayment income. Use the HECS calculator for an exact figure.
$67,000 repayment threshold
Earn at or below $66,999 repayment income and your compulsory HECS repayment for the year is $0. Cross $67,000 and repayments start at 1% of repayment income, rising through bands to a maximum of 10% at $150,000+. Employers often withhold during the year based on your TFN declaration; the ATO finalises the amount when you lodge.
2026–27 repayment rate bands
| Repayment income | Rate |
|---|---|
| $0 – $66,999 | Nil |
| $67,000 – $70,999 | 1.0% |
| $71,000 – $74,999 | 2.0% |
| $75,000 – $79,999 | 2.5% |
| $80,000 – $84,999 | 3.0% |
| $85,000 – $88,999 | 3.5% |
| $89,000 – $93,999 | 4.0% |
| $94,000 – $98,999 | 4.5% |
| $99,000 – $103,999 | 5.0% |
| $104,000 – $108,999 | 5.5% |
| $109,000 – $113,999 | 6.0% |
| $114,000 – $118,999 | 6.5% |
| $119,000 – $123,999 | 7.0% |
| $124,000 – $128,999 | 7.5% |
| $129,000 – $133,999 | 8.0% |
| $134,000 – $138,999 | 8.5% |
| $139,000 – $143,999 | 9.0% |
| $144,000 – $149,999 | 9.5% |
| $150,000+ | 10.0% |
Rates shown match the band schedule used in CalculatorQuest tools for estimating compulsory repayments. Always confirm final liability with the ATO after lodging.
Worked examples
| Salary | Approx. rate | Est. HECS/year |
|---|---|---|
| $65,000 | 0% | $0 |
| $80,000 | 3.0% | $2,400 |
| $100,000 | 5.0% | $5,000 |
| $120,000 | 7.0% | $8,400 |
See take-home with and without HECS: $80k, $120k.
Indexation and voluntary payments
Outstanding HELP balances are indexed annually (usually 1 June). Paying down the balance before indexation can reduce the amount that is indexed. There is no discount for early repayment — the benefit is simply a smaller indexed debt and less interest-like growth over time.
How this interacts with take-home pay
HECS is withheld from salary for most employees once you tell your employer you have a debt. Your take-home pay calculation should always include HECS if you have one, especially when comparing job offers near the $67,000 cliff.