HECS/HELP repayments 2026-27, explained
Study-loan repayments switched to a marginal system: you now repay a percentage of income above a threshold, not a percentage of your whole income. That removed the old cliff where one extra dollar could cost hundreds.
The 2026-27 formula
| Repayment income | You repay |
|---|---|
| Below $69,528 | Nothing |
| $69,528 to $129,717 | 15c per dollar above $69,528 |
| Above $129,717 | $9,028 + 17c per dollar above $129,717 |
A cap applies: your repayment never exceeds 10% of repayment income (the cap binds above roughly $186,000). Example: on $100,000 you repay 15% of $30,472 = about $4,571 a year.
Repayment income is more than salary
The calculation uses "repayment income": taxable income plus reportable super contributions (salary sacrifice), reportable fringe benefits, and investment losses added back. Salary-sacrificing super lowers your tax but not your HELP repayment.
Withholding vs the real bill
Your employer withholds an STSL amount each payday based on that pay period alone. The actual repayment is settled at tax time on your annual repayment income, so a mid-year raise, a second job or big deductions routinely produce a catch-up bill or refund.
Indexation
Balances index each 1 June, now at the lower of CPI and the wage index following the 2023-24 reform. Voluntary repayments just before indexation reduce the indexed amount, worth considering only after comparing returns elsewhere, since HELP balances grow by indexation rather than by a commercial interest rate.
See the effect on your own pay by ticking the study-loan box in the pay calculator, or compare $100,000 after tax with and without HELP in the variations table.
Frequently asked questions
Does salary sacrifice to super reduce my HECS/HELP repayment?
No. Salary sacrifice contributions are added back as reportable super contributions when calculating repayment income, so they reduce your income tax but not your HELP repayment amount.
How does the marginal HELP repayment system work?
You repay a percentage of income above each threshold, not a percentage of your whole income. This removed the old cliff where earning one extra dollar could cost hundreds in additional repayments.
When does the ATO finalise my actual HELP repayment amount?
The repayment is settled at tax time based on your annual repayment income. Employer withholding each payday is an estimate, so a mid-year pay rise or second job can produce a catch-up bill or refund.
Sources: ATO study and training support loan schedules 2026-27. Last updated 2026-11-05.