How HECS-HELP repayments work
Your repayment depends on your income each year, not on how big your debt is.
HELP debts, including HECS-HELP, are repaid through the tax system once your repayment income passes the threshold. You never make a payment to a bank, and the amount is worked out when you lodge your tax return, with your employer withholding some of it during the year.
The 2026-27 repayment rates
| Repayment income | Compulsory repayment |
|---|---|
| $69,528 and under | Nil |
| $69,529 to $129,717 | 15 cents for each $1 over $69,528 |
| $129,718 to $186,050 | $9,028 plus 17 cents for each $1 over $129,717 |
| $186,051 and above | 10% of your whole repayment income |
Worked example
For 2026-27, repayment income of $80,000 means ($80,000 − $69,528) × 15% = $1,570.80 for the year, about $60 a fortnight. At $100,000 it's $4,570.80, and at $150,000 it's $9,028 + 17% × ($150,000 − $129,717) = $12,476.11.
What is indexation?
Each 1 June your remaining debt is increased by an indexation rate so that it keeps pace with prices or wages, whichever is lower. It's not interest in the usual sense, but it does make the balance grow if your repayments are small. Extra voluntary repayments made before 1 June reduce the balance that gets indexed, which is the main reason people consider paying early. Check the ATO for the rate that applied on the most recent 1 June.
✨ Key Takeaways
- Repayments are tied to income, not to the size of the debt.
- Repayment income includes more than taxable income.
- Indexation is added every 1 June.
- Thresholds change every year, so check the ATO for the current ones.
Open the HECS-HELP calculator →