About the HECS-HELP Repayment Calculator
If you have a HECS-HELP debt (or another study loan such as VET Student Loan, SFSS or Australian Apprenticeship Support Loan), the ATO takes a compulsory repayment once your repayment income goes over the yearly threshold. Since 2025–26 the repayment is worked out like income tax: you only repay on the part of your income above the threshold, instead of a percentage of your whole income. This calculator uses the ATO’s published 2026–27 and 2025–26 thresholds so you can see your yearly repayment and what is withheld from each pay.
How to use the HECS-HELP Repayment Calculator
- Enter your taxable income for the year (salary and other income minus deductions).
- Pick the income year — 2026–27 runs from 1 July 2026 to 30 June 2027.
- If you have reportable fringe benefits, a net investment loss, reportable super contributions or exempt foreign employment income, tick the box and add them — they count towards your repayment income.
- Optionally enter your HELP balance to cap the repayment and see a rough payoff time.
- Switch between per year, month, fortnight and week to match your pay cycle.
The formula behind it
HECS-HELP repayment thresholds and rates 2026–27
The ATO’s rates for the 2026–27 income year (from 1 July 2026):
- Repayment income up to $69,528: nothing to repay.
- $69,528 to $129,717: 15c for each $1 over $69,528.
- $129,717 to $186,050: $9,028 plus 17c for each $1 over $129,717.
- Over $186,050: 10% of your total repayment income.
How much HECS will I repay? 2025–26 vs 2026–27
Repayment income equal to taxable income, with no other items. The 2026–27 thresholds were indexed upward, so the same income repays a little less than in 2025–26.
| Repayment income | 2025–26 | 2026–27 | 2026–27 per fortnight |
|---|---|---|---|
| $60,000 | $0.00 | $0.00 | $0.00 |
| $70,000 | $450.00 | $70.80 | $2.72 |
| $80,000 | $1,950.00 | $1,570.80 | $60.42 |
| $90,000 | $3,450.00 | $3,070.80 | $118.11 |
| $100,000 | $4,950.00 | $4,570.80 | $175.80 |
| $110,000 | $6,450.00 | $6,070.80 | $233.49 |
| $120,000 | $7,950.00 | $7,570.80 | $291.18 |
| $130,000 | $9,550.00 | $9,076.11 | $349.08 |
| $150,000 | $12,950.00 | $12,476.11 | $479.85 |
| $175,000 | $17,200.00 | $16,726.11 | $643.31 |
| $200,000 | $20,000.00 | $20,000.00 | $769.23 |
What counts as repayment income?
The threshold is tested against your repayment income, not just your salary. Repayment income is your taxable income plus:
- Reportable fringe benefits (shown on your income statement — common with salary packaging).
- Total net investment loss, such as a negative-gearing rental loss.
- Reportable super contributions, including salary-sacrificed super and personal contributions you claim as a deduction.
- Exempt foreign employment income.
Why the new system is cheaper for most people
Before 2025–26, once you crossed the threshold a percentage was charged on your whole income, so a small pay rise could add hundreds of dollars to your repayment. Now only the income above $69,528 (2026–27) is counted at 15%, so the repayment grows smoothly. At the top, above $186,050, the repayment returns to 10% of the whole income — the two methods meet at that point, so there is no sudden jump.
How to work out your HECS repayment yourself
You can check the calculator’s answer by hand in four steps:
- Add up your repayment income: taxable income plus reportable fringe benefits, net investment losses, reportable super contributions and exempt foreign employment income.
- Find your band for the income year (the 2026–27 thresholds are listed above).
- Take the amount above the start of your band and multiply it by the band’s rate (15c or 17c per $1), then add the fixed amount for the 17c band ($9,028 in 2026–27).
- Example: $90,000 in 2026–27 → $90,000 − $69,528 = $20,472 × 15% = $3,070.80 for the year.
HECS indexation: 2.8% on 1 June 2026
HELP debts do not charge interest. Instead, the balance is indexed once a year on 1 June by the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI). The ATO applied 2.8% on 1 June 2026 and 3.2% on 1 June 2025.
On a $30,000 balance, 2.8% indexation adds $840. Compulsory repayments made through your tax return reduce the balance only after the return is assessed, so a debt can still be indexed in a year you repaid. Enter your balance in the calculator to see roughly how long it takes to clear at your income, including indexation.
Pay-by-pay withholding vs your tax return
If you tell your employer you have a study loan on your TFN declaration, they withhold an extra amount from each pay using the ATO’s tax tables. The withheld amount is only an estimate. The real compulsory repayment is worked out on your tax return from your full-year repayment income, and any difference is added to your refund or tax bill.
Indexation is added to your balance each 1 June. Balances outstanding on 1 June 2025 were also cut by 20% under the government’s student debt reduction, which the ATO has been applying to accounts.
Examples
$90,000 income in 2026–27
15% × ($90,000 − $69,528) = $3,070.80 a year, or about $118.11 a fortnight.
$150,000 income in 2026–27
$9,028 + 17% × ($150,000 − $129,717) = $12,476.11 a year.
Frequently asked questions
What is the HECS repayment threshold for 2026–27?
$69,528 of repayment income. Below that you have no compulsory repayment, although indexation still applies to your balance.
How much HECS do I repay on $100,000?
In 2026–27, $4,570.80: 15% of the $30,472 above the $69,528 threshold. In 2025–26 it was $4,950.00.
Is HECS taken out of every pay?
Yes, if you tell your employer you have a study loan. They withhold an estimate each pay, and the exact amount is settled on your tax return.
Does salary sacrificing super reduce my HECS repayment?
No. Reportable super contributions are added back when working out repayment income, so salary sacrifice does not lower your compulsory repayment.
Does HECS charge interest?
No. Instead of interest, the balance is indexed each 1 June by the lower of CPI and WPI. The rate applied on 1 June 2026 was 2.8%.
When does my employer start taking HECS out of my pay?
When you tell them you have a study loan on your TFN declaration or a withholding declaration. They then withhold extra tax each pay using the ATO’s tables.
Will HECS reduce my tax refund?
It can. If your employer withheld less than your compulsory repayment for the year, the difference is taken from your refund or added to your tax bill when your return is assessed.
Can I pay off HECS faster?
Yes. You can make voluntary repayments to the ATO at any time. Whether that is worthwhile depends on indexation compared with what else you could do with the money.
Sources
About the author: Ahmed Bilal
Ahmed Bilal is the founder of VolexTool and builds and maintains every calculator on the site. Tax rates and thresholds are taken directly from official sources such as GOV.UK, HMRC, the Canada Revenue Agency and the Australian Taxation Office, the formula is shown on every page, and each update must pass more than 600 automated checks before it goes live. Ahmed is not a tax adviser: for decisions about your own situation, speak to a qualified accountant or financial adviser.