How is my 2025-26 HELP repayment worked out?

It uses the marginal method. You repay nothing up to $67,000, then 15c per dollar to $125,000. From $125,001 the repayment is $8,700 plus 17c per dollar to $179,285, then 10% of total income above that.

Why is my 2025-26 repayment lower than 2024-25?

The threshold rose from $54,435 to $67,000, and the rate now applies only to income above it, not your whole income. On $85,000, that cut the repayment from $3,825 to $2,700.

Did the 20% cut change my repayment?

No. The one-off 20% reduction around 1 June 2025 cut your HELP balance, not your yearly repayment. Your 2025-26 repayment is still worked out from your repayment income using the marginal rates.

HECS-HELP repayment thresholds & rates 2025–26

2025-26 was the first year HECS and HELP used the marginal repayment system, so it sets the rates your 2025-26 return uses. If your repayment income was $67,000 or less, you repaid nothing. Above $67,000, you repaid 15c for each dollar between $67,000 and $125,000. From $125,001 to $179,285, you repaid $8,700 plus 17c for each dollar over $125,000. Above $179,285, the repayment was 10% of your total repayment income. The rate now applies only to income above the threshold, not to every dollar you earned. That is the shift from the old flat-percentage method.

Compulsory repayment, 2025–26 (marginal system)
Repayment income	Repayment on this income
$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 your total repayment income

What changed

Two things changed. The threshold where repayments start rose from $54,435 to $67,000. And the method changed from a flat percentage of your total income to a marginal rate on income above the threshold. Most people repaid less. On $85,000, the repayment fell from $3,825 under the 2024-25 flat system to $2,700 in 2025-26. Separately, a one-off 20% reduction was applied to HELP balances around 1 June 2025.

Other years

2026–27 (current)

Work out your own repayment with the HECS/HELP calculator, or see the effect on full take-home pay for a salary, e.g. $85,000.

Frequently asked

How is my 2025-26 HELP repayment worked out?: It uses the marginal method. You repay nothing up to $67,000, then 15c per dollar to $125,000. From $125,001 the repayment is $8,700 plus 17c per dollar to $179,285, then 10% of total income above that.
Why is my 2025-26 repayment lower than 2024-25?: The threshold rose from $54,435 to $67,000, and the rate now applies only to income above it, not your whole income. On $85,000, that cut the repayment from $3,825 to $2,700.
Did the 20% cut change my repayment?: No. The one-off 20% reduction around 1 June 2025 cut your HELP balance, not your yearly repayment. Your 2025-26 repayment is still worked out from your repayment income using the marginal rates.