HELP repayment thresholds 2026–27 and the 2025 marginal repayment reform
How compulsory HELP and other study loan repayments work since the 2025 reform: the $69,528 threshold for 2026–27, marginal bands, repayment income, indexation and the 20% debt cut.
From the 2025–26 income year, compulsory repayments of HELP and other study and training loans are calculated only on the part of your repayment income above the threshold, instead of as a percentage of your whole income. For 2026–27 you repay nothing if your repayment income is $69,528 or less, then 15c for each dollar above $69,528 up to $129,717, then $9,028 plus 17c for each dollar above $129,717. Once repayment income passes about $186,050, the repayment is a flat 10% of your total repayment income. For 2025–26 (the year most people are lodging now) the starting threshold was $67,000.
The same reform package also cut existing HELP balances by 20% as at 1 June 2025 and changed indexation to the lower of CPI and wage growth. This guide explains each change, how to work out your repayment, and what still trips people up. It is general information; your exact figure appears on your notice of assessment.
The repayment bands
| Repayment income | 2025–26 | 2026–27 |
|---|---|---|
| Up to the threshold | Nil up to $67,000 | Nil up to $69,528 |
| First band | 15c per $1 over $67,000, up to $125,000 | 15c per $1 over $69,528, up to $129,717 |
| Second band | $8,700 + 17c per $1 over $125,000 | $9,028 + 17c per $1 over $129,717 |
| Top band | 10% of total repayment income above about $179,286 | 10% of total repayment income above about $186,050 |
The 2026–27 figures are the 2025–26 thresholds indexed. They were published by the ATO for 2026–27; confirm them on the ATO's study and training loan repayment thresholds page, because the top-band switch point is where third-party calculators most often differ.
The same thresholds apply to the combined total of HELP, VET Student Loans, Australian Apprenticeship Support Loans and similar study and training support loans. You make one compulsory repayment, applied to your loans in a set order.
What counts as repayment income
Repayment income is not just taxable income. It is broadly:
- taxable income, plus
- total net investment losses (for example a negatively geared rental loss), plus
- reportable fringe benefits, plus
- reportable super contributions (salary sacrifice and personal deductible contributions), plus
- exempt foreign employment income.
Illustrative example: taxable income $72,000, rental loss of $6,000 already deducted, salary sacrifice of $5,000. Repayment income = $72,000 + $6,000 + $5,000 = $83,000. For 2026–27 the repayment is 15% × ($83,000 − $69,528) = $2,020.80, even though taxable income alone would give 15% × $2,472 = $370.80.
This is why negative gearing and salary sacrifice reduce income tax but do much less to reduce your HELP repayment.
Worked examples for 2026–27
All illustrative, using the 2026–27 bands above:
| Repayment income | Calculation | Compulsory repayment |
|---|---|---|
| $65,000 | Below $69,528 | $0 |
| $80,000 | 15% × $10,472 | $1,570.80 |
| $110,000 | 15% × $40,472 | $6,070.80 |
| $150,000 | $9,028 + 17% × $20,283 | about $12,476 |
| $200,000 | 10% × $200,000 | $20,000 |
Under the old system (up to 2024–25) a person on $80,000 paid a percentage of the whole $80,000. The marginal design removes the "cliff" where crossing a threshold by one dollar triggered hundreds of dollars of extra repayment.
Indexation and the 20% reduction
HELP debts do not charge interest, but on 1 June each year the balance that has been outstanding for more than 11 months is indexed. Legislation passed in 2024 set indexation at the lower of the Consumer Price Index and the Wage Price Index, backdated to 1 June 2023, and the ATO credited the difference to affected accounts.
Separately, the Universities Accord legislation passed in 2025 reduced student loan balances by 20% as at 1 June 2025, applied before that year's indexation. The ATO applied the reductions to accounts during the second half of 2025. If your balance in myGov does not seem to reflect it, check the account transactions or contact the ATO.
Each year's indexation factor is published before 1 June on the ATO and StudyAssist websites. To test what different indexation rates mean for your payoff date, use the HELP debt payoff estimator.
How repayments are collected
- Through your pay. Tell each employer on your tax file number declaration that you have a study loan. Employers withhold an extra amount using the ATO's study and training loan tables. If you have two jobs, extra withholding can be too low or too high.
- At tax time. The ATO calculates the compulsory repayment on your notice of assessment. Amounts withheld during the year are credited against your total tax and repayment.
- From overseas. If you move overseas for 183 days or more in a year, you must update your contact details with the ATO and report worldwide income or a non-lodgment advice each year. Overseas repayment obligations are calculated on worldwide income.
- Voluntary payments. You can pay extra at any time through ATO online services or BPAY. There is no bonus for voluntary repayments. Whether it is worth it is covered in the voluntary repayment guide.
Mistakes to avoid
- Not ticking the study loan box with your employer. You can end up with a large repayment on assessment.
- Assuming salary sacrifice reduces HELP. It reduces taxable income but is added back to repayment income.
- Using an old calculator. Tools built before 2025 apply a percentage to the whole income and will overstate repayments for most people.
- Ignoring the debt in loan applications. Lenders consider the compulsory repayment as a reduction in your net income, even under the marginal system.
FAQ
Is a HELP repayment tax?
No. It is a loan repayment collected by the ATO, so it is shown separately from income tax on your notice of assessment.
My income is below the threshold. Can I get back what was withheld?
Yes. If your final repayment income is below the threshold, the extra amounts withheld for HELP are credited back when your return is assessed.
Does the 20% cut apply to new debts?
The 20% reduction applied to balances as at 1 June 2025. Debts incurred later are not reduced.
Do I still repay if I am self-employed?
Yes. Your repayment is calculated in your tax return and may also be included in your PAYG instalments.
Sources
- Australian Taxation Office — study and training loan repayment thresholds and rates, repayment income, overseas obligations
- StudyAssist — Department of Education information on HELP loans and indexation
- Federal Register of Legislation — Higher Education Support Act 2003 and the 2025 amending Act
Related: income tax rates, step-by-step tax calculation, take-home pay calculator.
