HECS-HELP Repayment Calculator (2026-27)
Work out your compulsory HECS-HELP student-loan repayment under Australia’s new marginal system. Enter your repayment income to see your yearly repayment, effective rate and per-pay amounts.
The 2026-27 marginal repayment system
From the 2025-26 income year, Australia changed how compulsory HECS-HELP (and other study and training loan) repayments are calculated. The old system charged a single rate on your entire income once you crossed a threshold. The new marginal system only charges you on the income above the minimum threshold — so crossing into a higher band no longer suddenly taxes all of your income at the higher rate.
2026-27 repayment rates
| Repayment income | Compulsory repayment |
|---|---|
| Up to $69,528 | Nil |
| $69,529 – $129,717 | 15% of income over $69,528 |
| $129,718 – $186,050 | $9,028 + 17% of income over $129,717 |
| $186,051 and over | 10% of total repayment income |
The bands are indexed each year in line with average weekly earnings (the 2025-26 threshold was $67,000).
Worked example
On a repayment income of $90,000, you only pay on the $20,472 above the $69,528 threshold: 15% × $20,472 = $3,071 for the year. That’s an effective rate of about 3.4% of income, or roughly $118 a fortnight.
Frequently asked questions
How is my HECS-HELP repayment calculated in 2026-27?
Using a marginal system: nothing on the first $69,528, then 15% on income between $69,528 and $129,717, then $9,028 plus 17% on income above $129,717 (up to $186,050). Very high earners pay 10% of total income. Only income above the threshold counts.
What is ‘repayment income’?
It’s your taxable income plus certain add-backs — reportable fringe benefits, reportable super contributions and net investment losses — so it’s usually a little higher than your taxable income.
Is HECS taken out of my pay?
Your employer withholds an estimated amount each pay (PAYG), but the actual compulsory repayment is worked out at tax time on your repayment income, with any difference settled in your return.
Did HECS-HELP debts get reduced in 2025?
Yes. On 1 June 2025 the government applied a one-off 20% reduction to outstanding HELP and other study-loan balances, before the 2025 indexation.
Rates sourced from the ATO 2025-26 study and training support loans thresholds. This is an estimate for general information only; confirm current figures with the ATO or a registered tax agent.