Study loans · FY 2026–27 · Updated July 2026
HECS/HELP repayments in 2026–27: the new marginal system
You repay nothing on income up to $69,528 (2026–27), then 15c per dollar above it, 17c per dollar past $129,717, capped at 10% of income. On an $85,000 income that's $2,321 a year — about $89 a fortnight. Under the pre-2025 rules the same income repaid over $5,000, so most borrowers are now thousands ahead.
Calculate your exact repayment → — Band-by-band breakdown, take-home impact, payoff estimate
The 2025–26 and 2026–27 thresholds
Because the system is marginal, earning $1 over the threshold costs you 15 cents — not a sudden bill on your whole income. The old system's 'cliff', where a payrise could leave you worse off, is gone.
| Band | FY 2025–26 | FY 2026–27 | Rate |
|---|---|---|---|
| No repayment | up to $67,000 | up to $69,528 | nil |
| Lower band | $67,000–$125,000 | $69,528–$129,717 | 15c per $1 over |
| Upper band | over $125,000 | over $129,717 | 17c per $1 over |
| Ceiling | — | — | capped at 10% of income |
What else changed in the 2025 reforms
- A one-off 20% reduction was applied to all eligible HELP balances before 1 June 2025 indexation — around $5,500 off the average debt.
- Indexation is now the lower of CPI and the Wage Price Index, backdated to 2023, ending the 7.1%-indexation shock scenario.
- The repayment threshold jumped from $54,435 to $67,000 and now indexes annually ($69,528 for 2026–27).
Worked example: $85,000 income, 2026–27
Income over the threshold: $85,000 − $69,528 = $15,472. Repayment: 15% × $15,472 = $2,321 for the year, withheld as roughly $89 per fortnight. Take-home after tax, Medicare and HELP: about $63,860. A $25,000 balance clears in roughly 11 years at this income if nothing changes — faster with payrises, slower if indexation outpaces them.
Common questions
Does my employer withhold the right HELP amount?
Employers withhold using ATO schedules once you declare a study loan, but withholding approximates the annual truth — big payrises, second jobs or bonuses often cause under-withholding that surfaces as a tax-time bill. The calculator shows the true annual figure to check against.
Do investment losses reduce my HELP repayment?
No — the opposite. Repayment income adds net investment losses back, along with reportable fringe benefits and reportable super contributions. Negative gearing lowers your taxable income but not your HELP repayment income.
Should I pay off HELP early?
Usually only if you value the cash-flow certainty. The 'interest' is indexation at the lower of CPI and WPI — cheaper than any commercial debt — so a mortgage offset or investing typically beats voluntary HELP repayments mathematically. Clearing a small final balance to stop withholding can still be worth it.
Does HELP debt affect borrowing power?
Yes, materially — lenders treat the compulsory repayment as an expense, cutting borrowing capacity by roughly 5–10% for typical incomes. Some borrowers clear small HELP balances specifically before a mortgage application.