HECS/HELP repayments
What you'll repay this year under the new marginal system — you only repay on income above $69,528.
Your compulsory repayment this year
$2,321
$193 a month, taken from your pay before it reaches you.
Repayment / month
$193
Roughly cleared in
11 yrs
2026-27 marginal system: you repay 15c per $1 above $69,528, rising in bands. “Repayment income” adds back some items (e.g. reportable super). Years-to-clear ignores annual indexation, so the real time is a little longer. A guide, not advice.
A study loan doesn't behave like a normal debt: no interest rate, no minimum monthly payment, no lender chasing you. The ATO takes a compulsory repayment from your pay based on what you earn, and indexes the balance once a year.
From 1 July 2025 that repayment moved to a marginal system. Previously, crossing a threshold meant repaying a percentage of your entire income, so a modest pay rise could trigger a jump of hundreds of dollars. Now you only repay on income above the minimum threshold, which makes each step up far gentler.
How this is calculated
- 1
Compare your income to the thresholds
Your income is checked against the 2026-27 thresholds. At or below $69,528 there is no compulsory repayment at all. Above it, your income falls into a band, which the rate ladder highlights.
- 2
Charge the rate only on income above the threshold
In the first band it is 15% of income above $69,528, so someone right on the threshold repays nothing. In the next band, to $186,050, it is $9,028 plus 17% of income above $129,717 — that base is the first band paid in full.
- 3
Switch to a flat rate at the top
At $186,051 and above the marginal calculation stops: a flat 10% applies to your total repayment income, not just the part above a threshold. It is the one point where the marginal logic no longer holds.
- 4
Turn the annual figure into a rough payoff
The headline repayment is divided by twelve, since it comes out across the year rather than as a lump sum. Your balance divided by that annual repayment gives the years-to-clear shown up top — it ignores indexation, so it is an optimistic floor.
- 5
Run the schedule with your own indexation
You set an indexation assumption in the advanced section. Each year the tool adds that percentage to the opening balance, subtracts your repayment, and repeats until the balance clears or forty years pass. A voluntary payment comes off before the first year's indexation.
What it assumes
- The income you enter is treated as your repayment income, which in reality adds back reportable super contributions, fringe benefits and net investment losses — so it can exceed your taxable income.
- Indexation is your assumption, not a published rate. Balances are indexed each 1 June to the lower of CPI and wage growth, so it is only known afterwards.
- Your income is held flat throughout. Pay rises, career breaks and part-year work will all change the real timeline.
- The schedule applies a full year of indexation then a full year of repayment in one step, whereas payroll withholds each pay cycle and settles at tax time.
- If you hold more than one study or training loan, enter the combined balance — the tool models a single number.
Common questions
Does salary sacrificing into super reduce my repayment?
No, and it catches plenty of people out. Compulsory repayments are assessed on repayment income, which adds reportable super contributions back. Sacrificing lowers your income tax but leaves the repayment essentially unchanged, so budget for both.
Is a voluntary repayment worth making?
There is no interest to save, so the only saving is indexation. A dollar off the balance can never be indexed again, and paying before 1 June skips that year's indexation on the amount paid. Whether that beats an offset account, super or shares depends on indexation against your likely return elsewhere.
Why doesn't this match what my employer takes out?
Employers withhold using the ATO's PAYG schedules, which assume you will earn at that rate all year. Your actual repayment is only settled when you lodge, so starting mid-year, a bonus or a second job can leave you well over or under.
What if my income drops below the threshold?
You have no compulsory repayment that year. The debt doesn't shrink, and it is still indexed on 1 June, so a long stretch below the threshold can see a balance grow. You can pay voluntarily at any income.
Does a HELP balance affect how much I can borrow?
Most lenders count your compulsory repayment as an ongoing commitment when assessing serviceability, so it reduces borrowing capacity while the balance lasts. The effect scales with the repayment, not the balance, and lender policies differ.
Sources: ATO — Study and training support loans rates and repayment thresholds · ATO — Study and training support loans · All data sources
See also: Take-home pay · Salary sacrifice · Debt payoff planner · Borrowing power
General information only, not financial advice. Figures are estimates based on the inputs and assumptions above and don't account for your personal circumstances. Confirm anything important with the relevant authority or a licensed adviser.