Question 1

What is the HECS-HELP repayment threshold for 2026-27?

Accepted Answer

The minimum repayment threshold for 2026-27 is $69,528 of repayment income. At or below that amount you make no compulsory repayment. Above it you repay 15c for each dollar over $69,528, up to $129,717; then $9,028 plus 17c for each dollar over $129,717, up to $186,050; and 10% of your total repayment income from $186,051. Source: ATO study and training loan repayment thresholds, 2026-27.

Question 2

How is my HECS repayment calculated?

Accepted Answer

Since 1 July 2025 compulsory repayments use marginal rates, like income tax: the repayment is worked out only on the part of your repayment income above the minimum threshold, not on your whole income. Repayment income is your taxable income plus reportable fringe benefits, total net investment losses, reportable super contributions and exempt foreign employment income. On $100,000 in 2026-27 the repayment is $4,571 a year.

Question 3

How long does it take to pay off HECS?

Accepted Answer

It depends on your income relative to the threshold. On $75,000 in 2026-27 the compulsory repayment is only $821 a year, which is less than typical annual indexation on a $30,000 debt, so the balance would not fall without voluntary repayments. On $120,000 the repayment is $7,571 a year, and a $30,000 debt clears in roughly four to five years after indexation. The calculator shows the estimate for your income and balance.

Question 4

Is HECS-HELP debt indexed?

Accepted Answer

Yes. HELP debt is indexed on 1 June each year at the lower of the Consumer Price Index and the Wage Price Index, a cap that was backdated to 1 June 2023. Indexation increases your balance; compulsory repayments through your tax return reduce it.

Question 5

Can I make voluntary HECS repayments?

Accepted Answer

Yes. You can make voluntary repayments at any time through the ATO, with no minimum amount. The 5% bonus for voluntary repayments of $500 or more ended on 1 January 2022, so the only benefit is a lower balance and less indexation.

Question 6

Does HECS come out of my pay each week?

Accepted Answer

Yes. If you have a HELP debt and tell your employer on your tax file number declaration, your employer withholds an extra amount from each pay using the ATO withholding schedule. The amount withheld is an estimate; your actual compulsory repayment is worked out when you lodge your tax return.

HECS-HELP Repayment Calculator 2026-27

How much HECS comes out of my pay in 2026-27?

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