# HECS repayment threshold and rates 2026-27

Source: https://calculatax.com/tax/hecs-repayment-thresholds/
Title: HECS Repayment Threshold 2026-27 & Rates | Calculatax
Last updated: 2026-11-07

The HECS repayment threshold for 2026-27 is **$69,528** of repayment income. Below it you repay nothing. Above it you repay 15c per dollar over $69,528, then 17c per dollar over $129,717. From $186,051 it's 10% of your total repayment income, as the [ATO study and training loan repayment thresholds and rates](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-loan-minimum-repayment-income-and-rates) set out.

These thresholds apply to HECS-HELP and every other study and training support loan. The repayment is collected with [income tax in Australia](https://calculatax.com/tax/) when your return is assessed.

| Repayment income 2026-27 | Compulsory repayment |
|---|---|
| $0 to $69,528 | Nil |
| $69,529 to $129,717 | 15c for each $1 over $69,528 |
| $129,718 to $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of total repayment income |

*2026-27 HELP and study loan repayment bands (marginal system). Source: ATO.*

> Figures checked 6 November 2026. Change log: added the 2026-27 bands published by the ATO and kept the 2025-26 bands for 2025-26 returns.

## 2025-26 bands for 2025-26 returns

Your 2025-26 tax return uses the 2025-26 bands, which start at $67,000. That was the first year of the marginal system.

| Repayment income 2025-26 | Compulsory repayment |
|---|---|
| $0 to $67,000 | Nil |
| $67,001 to $125,000 | 15c for each $1 over $67,000 |
| $125,001 to $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of total repayment income |

*2025-26 HELP and study loan repayment bands. Source: ATO.*

**$90,000 of repayment income in 2025-26**

| Step | Working | Amount |
|---|---|---|
| Income up to $67,000 | Nil | $0 |
| $67,001 to $90,000 | $23,000 × 15% | +$3,450 |
| **Compulsory repayment** |  | **$3,450** |

### If you haven't lodged your 2025-26 return

Self-lodgers had until Monday 2 November 2026 to lodge, because 31 October fell on a Saturday. If you use a registered tax agent, you may have a later date.

## Repayment owed at common incomes

This table shows the compulsory repayment in each year at six repayment incomes.

| Repayment income | 2026-27 repayment | Share of income | 2025-26 repayment | Share of income | Change |
|---|---|---|---|---|---|
| $70,000 | $70.80 | 0.10% | $450.00 | 0.64% | −$379.20 |
| $90,000 | $3,070.80 | 3.41% | $3,450.00 | 3.83% | −$379.20 |
| $110,000 | $6,070.80 | 5.52% | $6,450.00 | 5.86% | −$379.20 |
| $130,000 | $9,076.11 | 6.98% | $9,550.00 | 7.35% | −$473.89 |
| $150,000 | $12,476.11 | 8.32% | $12,950.00 | 8.63% | −$473.89 |
| $200,000 | $20,000.00 | 10.00% | $20,000.00 | 10.00% | $0.00 |

*Compulsory HELP repayments at selected repayment incomes, 2026-27 and 2025-26. Source: ATO bands; Calculatax calculation.*

The same income repays $379.20 less in 2026-27 anywhere both years sit in the 15c band. That's 15% of the $2,528 rise in the threshold.

### Why the saving changes higher up

When both years sit in the 17c band, the saving grows to $473.89. The band starts $4,717 higher, partly offset by a base amount that's $328 higher.

From $186,051, both years charge 10% of the total, so nothing changes.

Read the table against repayment income, which adds items such as reportable super contributions to taxable income. The [HECS repayment calculator](https://calculatax.com/tax/hecs-help-repayment-calculator/) works out that figure, your balance and a payoff estimate. To see the repayment next to your tax, use the [income tax calculator](https://calculatax.com/tax/income-tax-calculator/).

## Old percentage system vs the marginal system

Up to 2024-25, one percentage applied to your whole repayment income once you passed the threshold. Crossing the threshold by one dollar could trigger a repayment on all of your income at once.

The marginal system charges only the income inside each band, so the repayment climbs smoothly.

- **$18,604.61**: Repayment at $186,050 (Last dollar of the 17c band)
- **$18,605.10**: Repayment at $186,051 (First dollar of 10% of the total, 49 cents more)

> **One quirk remains at the top.** Above $186,050, each extra dollar adds 10c, down from 17c, so the marginal repayment rate falls at the highest incomes.

## How the threshold is indexed

Repayment thresholds are indexed each year to average weekly earnings. All three 2026-27 boundaries are about 3.77% higher than in 2025-26: $67,000 became $69,528, $125,000 became $129,717 and $179,285 became $186,050.

Your debt is indexed separately on 1 June, using whichever of the Consumer Price Index or Wage Price Index is lower. The rate was 2.8% on 1 June 2026, after 3.2% in 2025, as the [ATO's study and training loan indexation rates](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-indexation-rates) show.

### The 20% cut and what happens in your pay

In 2025, debts held on 1 June were also cut by 20% before that year's indexation. The ATO says it has finished applying the reduction.

Pay withholding follows the threshold too. Under Schedule 8, an employer starts withholding for HELP once weekly earnings reach $1,337 when you claim the tax-free threshold, which is about $69,524 a year. Without the tax-free threshold, it starts at $987 a week. The [PAYG withholding calculator](https://calculatax.com/tax/payg-withholding-calculator/) shows the amount from each pay.

## Repayment threshold questions: two jobs, salary sacrifice, low-income years and other loans

### What is the HECS threshold?

The HECS threshold for 2026-27 is $69,528 of repayment income. Below it, no compulsory repayment is due. Above it, you repay 15c for each dollar over $69,528, so $80,000 of repayment income means a $1,570.80 repayment. For 2025-26 returns, the threshold is $67,000.

### Does having two jobs change the HECS threshold?

No. The threshold applies to your total repayment income from all jobs. Withholding is the catch: with $50,000 from one job and $30,000 from another, neither employer withholds anything for HELP, because each wage sits below its Schedule 8 starting point. The full $1,570.80 on $80,000 then falls due at tax time.

### Does salary sacrifice lower my HECS repayment?

No. The [ATO's page on when you must repay your loan](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/when-must-you-repay-your-loan) treats salary sacrificed into super as a reportable employer super contribution, which counts towards repayment income. Someone with $80,000 of taxable income and $10,000 of salary sacrifice has $90,000 of repayment income. Their 2026-27 repayment is $3,070.80, up from $1,570.80.

### What happens in a year when my income is below the threshold?

No compulsory repayment is due when repayment income is $69,528 or less in 2026-27. Any extra your employer withheld can come back when you lodge, if you've no outstanding tax or other Commonwealth debts. Your balance can still be indexed on 1 June, so it may grow that year unless you make a voluntary repayment.

### Is the threshold the same for other study loans?

Yes. The $69,528 threshold and the same bands apply to HELP (including HECS-HELP and FEE-HELP), VET Student Loans, Student Start-up Loans and Australian Apprenticeship Support Loans. If you hold several, your compulsory repayment pays them off in a set order, starting with HELP.

*Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.*

## Sources

- [ATO: Study and training loan repayment thresholds and rates](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-loan-minimum-repayment-income-and-rates)
- [ATO: Study and training loan indexation rates](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-indexation-rates)
- [ATO: Study and training loans: what's new](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new)
- [ATO: Schedule 8 STSL components](https://www.ato.gov.au/tax-rates-and-codes/schedule-8-statement-of-formulas-for-calculating-study-and-training-support-loans-components)
- [ATO: When you must repay your loan](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/when-must-you-repay-your-loan)