HECS-HELP repayment thresholds & rates 2026–27

From 2026-27, compulsory HECS/HELP repayments use a marginal system. You repay nothing on repayment income at or under $69,528. Above that, you pay 15c for each dollar over $69,528, up to $129,717. From $129,717 to $186,050 you pay $9,028 plus 17c for each dollar over $129,717. Once your repayment income passes $186,050, the compulsory amount is 10% of your total repayment income. The marginal steps mean only the income above each threshold is charged at the higher rate, so crossing a threshold no longer lifts the rate on your whole income. Your employer withholds through the year, and the final amount is settled in your tax return.

Compulsory repayment, 2026–27 (marginal system)
Repayment incomeRepayment on this income
$0$69,528Nil
$69,529$129,71715c for each $1 over $69,528
$129,718$186,050$9,028 plus 17c for each $1 over $129,717
$186,051 and over10% of your total repayment income

What changed

The point where repayments start rose to $69,528 for 2026-27, up $2,528 from the 2025-26 threshold of $67,000. Indexation lifts the threshold each year, so more low and middle incomes fall under it. The band limits also moved: the middle band now runs to $186,050, and the second-band base is $9,028.

Other years

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 HELP repayment worked out in 2026-27?
It uses a marginal scale. Nothing applies up to $69,528. You pay 15c per dollar from $69,528 to $129,717, then $9,028 plus 17c per dollar to $186,050, and 10% of total repayment income above that.
How does this differ from the old flat system?
Until 2024-25, a flat percentage of your total repayment income applied once you passed the threshold, across 18 bands from 1% to 10%. The 2026-27 marginal system charges the higher rates only on income above each threshold.
What was the 20% HELP balance reduction?
Around 1 June 2025 a one-off 20% cut was applied to all HELP balances. It reduced the debt you owe, not your yearly compulsory repayment, which still depends on your repayment income and the current scale.
What counts as repayment income?
It is your taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income. For a plain salary with none of those extras, repayment income equals your salary.