HECS Repayment 2026-27: Threshold, Rates & Examples
If you have a HECS-HELP or other study loan, compulsory repayments are collected through the tax system once your repayment income is above $69,528 in 2026-27. Since the marginal system started, you repay a percentage of the income above each threshold rather than a percentage of your whole income, so there is no longer a cliff where crossing the threshold by $1 costs hundreds of dollars.
Instant estimate: HECS debt calculator or include HECS in the pay calculator.
Repayments start above $69,528 repayment income. Between the thresholds, you repay a percentage of income above the threshold, not of all income. Source: ATO study and training loan repayment thresholds.
2026-27 repayment rates
| Repayment income | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $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 |
| $186,051 and over | 10% of total repayment income |
Source: ATO: Study and training loan repayment thresholds and rates. The ATO works out your final amount when you lodge your tax return; amounts withheld by your employer during the year are credited against it.
Worked examples
| Repayment income | Repayment / year | Share of income |
|---|---|---|
| $65,000 | $0 | 0% |
| $80,000 | $1,571 | 2% |
| $100,000 | $4,571 | 4.6% |
| $120,000 | $7,571 | 6.3% |
| $150,000 | $12,476 | 8.3% |
| $200,000 | $20,000 | 10% |
These match the ATO's own worked examples: $86,380 of repayment income gives $2,527.80, and $137,064 of repayment income gives $10,276.99.
See take-home with and without HECS: $80k, $120k.
Indexation and voluntary payments
Outstanding HELP balances are indexed on 1 June each year. The 2026 indexation rate was 2.8%. Voluntary repayments made before 1 June reduce the balance that indexation applies to; use the HECS indexation calculator to see the dollar effect.
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 include HECS if you have one. Because repayment income adds back salary sacrificed super and reportable fringe benefits, packaging does not reduce your HECS repayment the way it reduces income tax.