Key takeaways
- The 2026-27 repayment threshold is $69,528, indexed up from $67,000 in 2025-26.
- You repay 15c per dollar between $69,528 and $129,717, and 17c per dollar above that. Above $186,050 the repayment is a flat 10% of your whole repayment income.
- On $100,000 of repayment income the 2026-27 compulsory repayment is $4,571. Under the old 2024-25 flat rates it would have been $5,500.
- Repayments are calculated on repayment income, not just salary: reportable fringe benefits, reportable super contributions and investment losses are added back.
- Your employer withholds an estimate through the year, but the real repayment is worked out when your tax return is assessed.
- The one-off 20% debt reduction cut balances, not rates. Your repayment for 2026-27 depends only on income, not on how big the debt is.
HECS repayments at 8 income levels (2026-27)
The fast answer first. Every figure below is calculated from the 2026-27 marginal formula: nothing below $69,528, then 15c per dollar to $129,717, then 17c per dollar above that.
| Repayment income | Annual repayment | Per week | Share of income |
|---|---|---|---|
| $70,000 | $71 | $1 | 0.1% |
| $80,000 | $1,571 | $30 | 2.0% |
| $90,000 | $3,071 | $59 | 3.4% |
| $100,000 | $4,571 | $88 | 4.6% |
| $110,000 | $6,071 | $117 | 5.5% |
| $120,000 | $7,571 | $146 | 6.3% |
| $150,000 | $12,476 | $240 | 8.3% |
| $180,000 | $17,576 | $338 | 9.8% |
One band sits above this table: from $186,051 of repayment income, the ATO charges a flat 10% of your total repayment income instead. The bands are designed to meet, so at the crossover point of $186,050 the marginal formula and the 10% flat rate produce the same $18,605.
Calculate your exact repayment
The table covers eight round numbers. For your own salary, including how the repayment interacts with income tax and the Medicare levy in your take-home pay, use the HECS repayment calculator. It applies the same 2026-27 thresholds shown here.
How the marginal system works
Since 1 July 2025, HECS-HELP repayments work like tax brackets. Only the income above the threshold attracts a repayment, which kills the old cliff where one extra dollar of income could add hundreds to your bill.
Worked example: $90,000 repayment income, 2026-27
Past $129,717 the rate on further dollars steps up to 17c, stacking on top of the full 15c band rather than replacing it.
Worked example: $150,000 repayment income, 2026-27
What counts as repayment income
The ATO does not use your salary alone. Repayment income is taxable income plus reportable fringe benefits, reportable super contributions, total net investment losses and exempt foreign employment income. Salary packaging can therefore raise your HECS repayment even while it lowers your tax: reportable fringe benefits are added straight back. The construction is close to adjusted taxable income, the income-test base used across the tax system.
A $60,000 salary with $20,000 of reportable fringe benefits and $8,000 of reportable super is $88,000 of repayment income. The payslip looks under the threshold; the assessment says $2,771.
One set of thresholds, six loan types
"HECS" is shorthand. The thresholds and rates above apply identically to every study and training support loan: HECS-HELP, FEE-HELP and the rest of the Higher Education Loan Program, VET Student Loans, the old Student Financial Supplement Scheme, Student Start-up Loans, ABSTUDY Student Start-up Loans and Australian Apprenticeship Support Loans. Hold more than one and the ATO applies your compulsory repayment in a fixed order, HELP first, then VSL, SFSS, SSL, ABSTUDY SSL and AASL last. You cannot direct the money at a particular loan.
High earners should note the top band with real numbers: at $200,000 of repayment income the 2026-27 repayment is $20,000, and at $250,000 it is $25,000, both being a flat 10% of the whole repayment income rather than the marginal 15c and 17c bands.
Old flat rates vs the new marginal system
Until 2024-25, your repayment rate applied to your entire repayment income. Crossing a band boundary by one dollar repriced every dollar. The comparison below uses the ATO's published 2024-25 flat rates against the 2026-27 marginal formula.
| Repayment income | 2024-25 flat system | 2026-27 marginal system | Difference |
|---|---|---|---|
| $70,000 | $1,750 (2.5%) | $71 | $1,679 less |
| $80,000 | $3,200 (4.0%) | $1,571 | $1,629 less |
| $100,000 | $5,500 (5.5%) | $4,571 | $929 less |
| $120,000 | $9,000 (7.5%) | $7,571 | $1,429 less |
The old 2024-25 threshold was also much lower: repayments began at $54,435. Under the marginal system the first repayment dollar arrives at $69,528, and someone earning $70,000 owes $71 instead of $1,750. Slower repayment does mean the debt hangs around longer, which matters because the balance is indexed each 1 June. See HECS indexation for how the 2.8% June 2026 rate was set.
When the money actually comes out
Two separate things happen. Through the year, your employer withholds extra from each pay because you declared the debt on your TFN declaration. That extra is an estimate and sits with the ATO as a credit. Then, when your return is assessed, the ATO calculates the real compulsory repayment from your repayment income and applies it to the loan. If the withholding overshot, the difference comes back in your refund.
This is why your loan balance does not shrink payday by payday. The repayment lands once a year, at assessment. To see the current balance and every credit applied, follow the steps in find your HECS debt.
If you want the debt gone faster than the compulsory schedule, voluntary payments are possible at any time, with timing considerations covered in paying off HECS early.
Will the threshold change again?
Yes, every year. The thresholds are indexed annually: the minimum moved from $67,000 in 2025-26 to $69,528 in 2026-27, and the 17c band start moved from $125,000 to $129,717. Expect a fresh set each 1 July. The repayment percentages themselves (15c, 17c, the 10% flat band) carried over unchanged from 2025-26. Rate changes of that kind need legislation, and the current settings came out of the 2024 Universities Accord package, so treat them as stable until a budget says otherwise. The 2026-27 tax changes page tracks what moved this year across the whole system.
Frequently asked questions
How much HECS do I pay on $80,000?
What is the HECS repayment threshold for 2026-27?
When do you start paying HECS?
Is HECS taken out of every pay?
Do the rates apply to my whole income?
Does the 20% debt reduction change my repayments?
Do I pay HECS on a second job?
What if my income drops below the threshold?
Does HECS show separately on my payslip?
Which loans do these rates cover?
Sources and further reading
- ATO: Study and training loan repayment thresholds and rates (2026-27 and prior-year tables; accessed 28 July 2026)
- ATO: Study and training loan indexation rates
- ATO: View your study loan account online
Related resources
HECS Repayment Calculator
Your repayment and take-home pay on any salary
Open →HECS Indexation
The 2.8% June 2026 rate and how it is set
Open →Find Your HECS Debt
The exact myGov path to your loan balance
Open →
Narelle Hartigan is a CPA-qualified tax accountant with over a decade of experience in Australian personal taxation and payroll. She founded PAYG Calculator Australia to make tax withholding easy for every Australian worker to understand.