The 2026–27 repayment thresholds
Since 2025–26, compulsory repayments are calculated only on the part of your repayment income above the minimum threshold, rather than as a percentage of your whole income. For 2026–27 the ATO thresholds are:
| Repayment income | 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 |
One set of thresholds covers every study and training support loan the ATO collects: HELP (including HECS-HELP and FEE-HELP), VET Student Loans, the Student Financial Supplement Scheme, Student Start-up Loans, ABSTUDY SSL and the Australian Apprenticeship Support Loan.
How to use the calculator
- Select the income year.
- Enter your taxable income — your assessable income minus deductions.
- Open "Other amounts" and add any reportable fringe benefits, net investment losses, reportable super contributions and exempt foreign employment income. These all count towards repayment income.
- Read the compulsory repayment, the band you fall in and an approximate fortnightly equivalent.
Repayment income is more than your salary
A common surprise is that salary sacrifice doesn't lower your HELP repayment. Reportable super contributions are added back to taxable income, as are reportable fringe benefits from salary packaging and net rental or investment losses. The calculator's default example uses the ATO's own case: taxable income of $60,470 plus $5,400 fringe benefits, $1,330 investment loss, $16,500 reportable super and $2,680 exempt foreign income gives repayment income of $86,380 and a repayment of $2,527.80.
Worked examples
With repayment income of $80,000 the 2026–27 repayment is $1,570.80. Under 2025–26 thresholds the same income would have repaid $1,950.00. At $100,000 the 2026–27 repayment is $4,570.80, and at $150,000 it is $12,476.11.
Withholding during the year
If you tell your employer about your loan on your TFN declaration, they withhold an extra amount from each pay using the ATO's study and training support loan tax tables. That withholding is an estimate. The ATO works out your actual compulsory repayment when you lodge your tax return and credits what was withheld against it. Over-withholding is refunded and under-withholding becomes a tax bill.
Indexation and the 20% reduction
Study loans don't charge interest, but the balance is indexed each 1 June. Indexation on 1 June 2026 was 2.8%. A one-off 20% reduction was applied to loans that existed on 1 June 2025, and the ATO has finished processing it. Neither changes the compulsory repayment formula, which depends only on repayment income.
When you don't have to repay
If repayment income is at or below $69,528 in 2026–27, no compulsory repayment is due. Your repayment can never exceed your outstanding balance. Voluntary repayments can be made at any time and are separate from compulsory repayments.
Common questions at tax time
Many people are surprised to owe a HELP amount after lodging even though extra tax was withheld all year. That usually happens when an employer wasn't told about the loan, when you had two jobs and only one withheld for the loan, or when investment losses or salary sacrifice were added back to repayment income. The reverse also happens: if your repayment income ends up under $69,528, everything withheld for the loan is credited back against your tax.
Planning ahead
If you expect a pay rise, enter your projected income to see how the repayment will change. Because the system is marginal, each extra dollar above the threshold costs 15 cents in repayment until $129,717, so a $5,000 rise adds $750 to the year's repayment. Combine this with the take-home pay calculator, which includes the study loan when you tick the box, to see your full after-tax position.
Frequently asked questions
What is the HECS repayment threshold for 2026–27?
The minimum repayment income for 2026–27 is $69,528. Below that no compulsory repayment is due.
Does salary sacrifice reduce my HECS repayment?
No. Reportable super contributions are added back when calculating repayment income.
Is HECS repayment calculated on my whole income?
Not any more. From 2025–26 the 15% and 17% rates apply only to income above each threshold. Only incomes above $186,050 in 2026–27 repay 10% of total repayment income.
Do working holiday makers have HELP debts?
No. Working holiday makers cannot have a HELP or other study loan debt.
Will my employer withhold the exact amount?
No. Withholding is an estimate. The ATO calculates the actual compulsory repayment after you lodge.
