HECS Repayment Calculator FY2026-27
HECS/HELP repayments changed from 2025–26 — compulsory repayments now use a marginal system, the same shape as income tax brackets, instead of a flat percentage of your whole repayment income. This calculator uses the current FY2026-27 marginal rates, not the old flat-rate system some other calculators still show.
Enter your repayment income and current HELP/HECS balance to see your compulsory repayment for the year and roughly how many years it would take to clear your balance at that rate.
Calculate your compulsory repayment
Compulsory repayment (per year): $2,321
Years to clear your balance at this rate (rough): 10.8
Your repayment income is at or below the threshold, so your compulsory repayment is nil — this rough division doesn't apply at $0 repayment.
This is general information, not financial or tax advice — consider a registered tax agent or financial adviser for guidance specific to your situation.
Estimates for general information — not financial or tax advice. Method, rates and sources are published below.
Compulsory repayment by income (FY2026-27)
Compulsory repayment at common repayment incomes, computed from the engine above, compared with what the same income would have paid in FY2025-26 under last year's (also marginal) thresholds.
| Repayment income | FY2026-27 repayment | FY2025-26 repayment | FY2026-27 vs FY2025-26 |
|---|---|---|---|
| $67,000 | $0 | $0 | No change |
| $75,000 | $821 | $1,200 | $379 less |
| $85,000 | $2,321 | $2,700 | $379 less |
| $100,000 | $4,571 | $4,950 | $379 less |
| $125,000 | $8,321 | $8,700 | $379 less |
| $150,000 | $12,476 | $12,950 | $474 less |
| $180,000 | $17,576 | $18,000 | $424 less |
How this is calculated
Compulsory repayment is calculated on repayment income using the marginal brackets below: the first $69,528 of repayment income is repaid at 0%, the next slice at each bracket's rate in turn, up to the switchover point — above that, the calculation is no longer marginal at all: it becomes a flat percentage of your total repayment income, not just the amount above a threshold.
| Repayment income | Repayment rate |
|---|---|
| $0 – $69,528 | 0% |
| $69,528 – $129,717 | 15% |
| $129,717 – $186,050 | 17% |
| $186,051 and over | 10% of TOTAL repayment income |
"Years to clear your balance at this rate" is a rough estimate only: current balance divided by this year's compulsory repayment. It doesn't account for indexation added to your balance each year, changes to your income over time, or voluntary repayments — see "What this doesn't model" below.
Sources
- ATO — Study and training loan repayment thresholds and rates (FY2026-27 and FY2025-26 tables) — verified 2026-07-10
- ATO — Study and training loans – what's new (marginal system change, 20% debt reduction) — verified 2026-07-10
- ATO — Compulsory repayments (PAYG withholding vs assessment) — verified 2026-07-10
Assumptions used here follow the same general approach as ASIC's MoneySmart calculators and may not reflect every personal circumstance — see "What this doesn't model" for specifics.
What this doesn't model
- Future indexation of the repayment thresholds themselves, or of your loan balance — both are indexed annually (thresholds to average weekly earnings; balances to an inflation measure), but this calculator only uses the current published FY2026-27 and FY 2025-26 figures, not a forecast of future years.
- The one-off 20% debt reduction — already applied by the ATO to eligible balances that existed on 1 June 2025 (see the FAQ above). Enter your current balance as it stands now; this calculator doesn't apply that reduction again.
- Salary packaging and salary sacrifice effects on repayment income. Reportable fringe benefits from salary packaging are added back into repayment income under the full ATO definition below, so — unlike income tax — salary sacrificing doesn't reduce your HECS repayment the way it reduces your taxable income.
- The full repayment income definition. This calculator treats your taxable income as a proxy for repayment income. The ATO's actual definition adds: reportable fringe benefits, total net investment loss (including net rental losses), reportable super contributions, and exempt foreign employment income. If any of these apply to you, your real repayment income — and therefore your real compulsory repayment — will be higher than the figure this calculator shows.
- PAYG withholding amounts your employer takes out during the year — this calculator only computes the compulsory repayment itself, not how much has already been withheld towards it (see the FAQ above on withholding versus assessment).
If any of these apply to you, your actual compulsory repayment will differ from the figures above.
Frequently asked questions
What changed with HECS/HELP repayments?
From the 2025–26 income year, compulsory repayments moved from a flat percentage of your WHOLE repayment income to a marginal system — you only repay on the slice of income above the minimum threshold, the same shape as income tax brackets. For FY2026-27 that threshold is $69,528: below it you repay nothing, and above it the rate rises in steps (currently 15%, then 17%, then a flat 10% of your total repayment income once you're well above the threshold). The thresholds are indexed each year in line with average weekly earnings, which is why the FY2026-27 threshold is higher than FY2025-26's $67,000.
Was my HECS/HELP debt really cut by 20%?
Yes. The Australian Government applied a one-off 20% reduction to eligible HELP, VET Student Loan, ABSTUDY Student Start-up Loan and other study/training support loan balances that existed on 1 June 2025, and the ATO has confirmed that processing is complete. That is a separate change from the one this calculator models: the 20% cut reduced loan BALANCES, while the marginal system described above changed how much you repay each year. This calculator asks you to enter your current balance (after any reduction already applied), so you don’t need to re-apply the 20% cut yourself.
When do I start repaying my HECS/HELP debt?
Once your repayment income for the year is above the minimum threshold — $69,528 for FY2026-27. Your compulsory repayment is worked out when you lodge your tax return and appears on your notice of assessment; it isn't something you separately apply for. If your repayment income stays at or below the threshold, your compulsory repayment for that year is nil, even if you still owe a balance.
How does the old system compare to the new one at $80,000?
Using the ATO's own example: on a $80,000 repayment income in FY2025-26, the OLD flat-percentage system charged $2,800 (3.5% of the whole $80,000). Under the NEW marginal system introduced that same year, the same income instead pays $1,950 — 15% of just the $13,000 above the $67,000 threshold. That's roughly $850 less for the year, an example of why most borrowers pay less under the new system than they would have under the old one at the same income.
Does HECS/HELP come out of every pay, or only at tax time?
Both, in a sense, but they work differently. If you've told your employer about your study loan (on your TFN or withholding declaration), they withhold an extra amount from every pay under the PAYG withholding system, alongside your regular income tax withholding. But that withheld amount just sits with the ATO — it is NOT applied to your loan balance pay by pay. Your actual compulsory repayment is only calculated once, when you lodge your tax return, and is applied to your loan balance as a single lump sum at that point (with any over-withheld amount refunded to you, tax debts permitting).