The HELP repayment thresholds for 2026-27 start at a repayment income of $69,528. Below that you make no compulsory repayment. Above it, you repay 15c for each dollar over $69,528, rising to 17c per dollar once your repayment income passes $129,717.
This is the second year of the new marginal system. Before 1 July 2025, once you crossed the threshold you repaid a flat percentage of your whole income, so a small pay rise could add hundreds of dollars to your bill. Now only the slice above the threshold counts.
Below we set out the 2026-27 and 2025-26 thresholds, what counts as repayment income, how your employer withholds for your loan, and worked examples. Every figure has been checked against the ATO study and training loan rates page.
Key takeaways
- For 2026-27 you make no compulsory HELP repayment if your repayment income is $69,528 or less.
- Between $69,529 and $129,717 you repay 15c for each $1 over $69,528.
- Between $129,718 and $186,050 you repay $9,028 plus 17c for each $1 over $129,717.
- At $186,051 and over you repay 10% of your total repayment income.
- Repayment income is more than your taxable income. It adds back items such as reportable fringe benefits, net investment losses and reportable super contributions.
What are the HELP repayment thresholds for 2026-27?
The thresholds apply to all study and training loans, including HELP (formerly HECS-HELP), VET Student Loans, SFSS, Student Start-up Loans and Australian Apprenticeship Support Loans. The ATO publishes them as follows.
| Repayment income 2026-27 | 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 |
These thresholds are indexed each year in line with average weekly earnings, which is why they moved up from the 2025-26 figures below. Source: ATO, Study and training loan minimum repayment income and rates.
How do the 2026-27 thresholds compare with 2025-26?
| Repayment income 2025-26 | Compulsory repayment |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c for each $1 over $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of total repayment income |
The rates are the same in both years. Only the dollar thresholds have changed. Your 2025-26 tax return (the one most people are lodging now) uses the 2025-26 table. The 2026-27 table applies to income you earn from 1 July 2026 to 30 June 2027.
What changed when the marginal system started?
The Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 made two big changes to student loans:
- A 20% cut to loan balances. The reduction applied to all study and training support debts that existed on 1 June 2025. The ATO has applied it to accounts, and any account left in credit is being refunded where there are no other tax or Commonwealth debts.
- Marginal repayments from 1 July 2025. From the 2025-26 income year, compulsory repayments are worked out only on income above the minimum repayment income, rather than as a percentage of your total income.
Under the old system for 2024-25 and earlier years, repayments were a flat 1% to 10% of your total repayment income, with nothing payable below $54,435 for 2024-25. The ATO’s own example shows the difference: at $80,000 of repayment income, the repayment falls from $2,800 (3.5% of total income) to $1,950 (15% of the $13,000 above $67,000). See ATO, Study and training loans – what is new.
What counts as repayment income?
Your HELP repayment is based on your repayment income, not just your taxable income. Repayment income is the total of:
- your taxable income (not counting assessable First Home Super Saver released amounts)
- reportable fringe benefits shown on your income statement
- total net investment loss, including net rental property losses
- reportable super contributions, such as salary sacrificed super and personal contributions you claim a deduction for
- exempt foreign employment income
So negatively geared property or extra salary sacrifice to super can lower your tax but will not lower your HELP repayment. If you want to see your taxable income first, our tax refund calculator is a good starting point.
Watch out
Salary sacrifice and rental losses are added back. Someone with a $65,000 taxable income, $3,000 of salary sacrificed super and a $2,000 net rental loss has a repayment income of $70,000, which is above the 2026-27 threshold.
How is your HELP repayment collected?
You do not need to report your loan in your tax return. The ATO knows you have a debt, works out your compulsory repayment when you lodge, and shows it on your notice of assessment. Source: ATO, Compulsory repayments.
- Employees: tell your employer you have a loan on your Tax file number declaration or a Withholding declaration. They then withhold an extra amount from each pay.
- Withholding is not a repayment yet. The amounts withheld do not reduce your loan each payday. They are credited against your compulsory repayment when your return is assessed.
- Instalment payers: if you pay PAYG instalments on business or investment income, the ATO factors your loan into your instalment rate. The marginal system changes apply to instalments from 1 July 2026.
- Once your loan is paid off: lodge a new Withholding declaration so your employer stops the extra withholding.
If you want to check what will come out of your pay, try our Australian pay calculator. For more on how bonuses are withheld, see tax on bonus in Australia.
Worked example: how much will you repay?
The facts
Mia is an Australian resident with a HELP debt. Her only income is salary. Her taxable income is $80,000 and she has no fringe benefits, investment losses or reportable super contributions, so her repayment income is also $80,000.
Old rules (flat rate, before 1 July 2025)
- Under the old flat-rate approach used in the ATO’s example, $80,000 attracted a rate of 3.5% of total repayment income.
- $80,000 x 3.5% = $2,800
New rules for 2025-26
- Income above the threshold: $80,000 – $67,000 = $13,000
- $13,000 x 15% = $1,950
- Saving compared with the old rules: $2,800 – $1,950 = $850
New rules for 2026-27
- Income above the threshold: $80,000 – $69,528 = $10,472
- $10,472 x 15% = $1,570.80
- If Mia’s income stays at $80,000, her compulsory repayment drops by a further $379.20 because the threshold has been indexed.
Higher income examples for 2026-27
| Repayment income | Calculation | Compulsory repayment |
|---|---|---|
| $65,000 | Below $69,528 | Nil |
| $100,000 | ($100,000 – $69,528) x 15% = $30,472 x 15% | $4,570.80 |
| $140,000 | $9,028 + ($140,000 – $129,717) x 17% = $9,028 + $1,748.11 | $10,776.11 |
| $190,000 | $190,000 x 10% | $19,000.00 |
If your employer withheld more than your compulsory repayment, the extra may be refunded when you lodge your tax return, as long as you have no outstanding debts with the ATO or other Commonwealth agencies.
Do you still repay if you move overseas?
Yes, if you have a HELP, VET Student Loan or Australian Apprenticeship Support Loan. If you plan to live overseas for 183 days or more in any 12-month period, you must tell the ATO within 7 days of leaving Australia. You then need to report your worldwide income each year, or lodge a non-lodgment advice, by 31 October. For 2025-26, non-residents with worldwide income of $16,750 or less lodge a non-lodgment advice. Source: ATO, Overseas obligations when repaying loans.
If you are new to Australia or here on a working holiday, our guide to the working holiday maker tax return may also help.
Can you make voluntary HELP repayments?
Yes. You can pay extra at any time through the ATO. Voluntary repayments reduce your loan balance, but they do not reduce the compulsory repayment for the year if you still have a debt and your income is above the threshold.
Indexation is applied to your loan each 1 June to the part that has been unpaid for more than 11 months. The rate is the lower of CPI and the Wage Price Index. It was 2.8% on 1 June 2026 and 3.2% on 1 June 2025. Source: ATO, Study and training loan indexation rates.
Tip
Before paying extra off your loan, compare it with other uses for the money, such as an offset account or extra super. Indexation is now tied to the lower of CPI and wages growth, and a registered tax agent can help you weigh up the options.
When is no compulsory repayment needed?
- Your repayment income is at or below the minimum repayment income ($69,528 for 2026-27, $67,000 for 2025-26).
- You have a spouse or dependants and your low family income means you get a Medicare levy reduction or do not have to pay the Medicare levy. You can ask your employer to stop the extra withholding using a Medicare levy variation declaration.
- Your loan has been fully repaid.
If you think too much was taken for HELP in a past year, a registered tax agent can check your notice of assessment and, if needed, help with amending a tax return. For the income tax rates that sit alongside these thresholds, see our ATO tax rates guide.
HELP repayment thresholds FAQs
What is the HELP repayment threshold for 2026-27?
The minimum repayment income for 2026-27 is $69,528. If your repayment income is at or below that amount, you make no compulsory repayment. Above it, you repay 15c for each $1 over $69,528, rising to 17c per $1 over $129,717, and 10% of total repayment income from $186,051.
Is HELP repayment calculated on my whole income?
Not any more. From the 2025-26 income year, compulsory repayments are calculated using marginal rates, so only the income above the threshold is counted, until your repayment income reaches the top band ($186,051 for 2026-27), where 10% of total repayment income applies.
How much HELP will I repay on $80,000?
For 2026-27, a repayment income of $80,000 means a compulsory repayment of $1,570.80, which is 15% of the $10,472 above $69,528. For 2025-26 the same income gives $1,950.
Does salary sacrifice reduce my HELP repayment?
No. Reportable super contributions, including salary sacrificed amounts, are added back when working out your repayment income. Net investment losses, such as rental property losses, and reportable fringe benefits are also added back.
Was my HELP debt reduced by 20%?
If you had a study or training support debt on 1 June 2025, the ATO has applied a 20% reduction to it under the Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025.
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Talk to a registered tax agent
Want to know exactly how your HELP debt will affect your tax return or your take-home pay? Speak with a registered tax agent at Nanak Accountants & Associates on 1300 626 258, or book a consultation with our team. We prepare individual tax returns for employees and graduates across Australia.
This article is general information only and is not personal financial or tax advice. Information checked against ATO and Federal Register of Legislation sources on 28 October 2026.
