HECS-HELP Australia
HECS-HELP Australia is the government’s student loan scheme — and the reassuring part is it costs you nothing until your income crosses a threshold. Here’s exactly when compulsory repayments start, how much comes out, and how the loan is worked out.
Last updated: September 2026 · ATO study and training loan thresholds · FY 2026–27
What is HECS-HELP?
HECS-HELP is the loan the Australian Government gives eligible students to cover their university tuition. You don’t pay anything up front and nothing at all while your income is low. Once your repayment income passes the annual threshold — $69,528 for 2026–27 — the Australian Taxation Office collects a compulsory repayment through your tax return, and your employer usually withholds a bit extra from each pay to cover it.
From the 2025–26 year the system changed to marginal rates: instead of one percentage applied to your whole income, you only repay a percentage of the income above the threshold. That makes crossing a threshold far less punishing than it used to be. The same set of thresholds covers every study and training loan — HELP, VET Student Loans, SFSS, and the apprenticeship loans — and your outstanding balance is indexed once a year, on 1 June, to keep pace with inflation. The tools below turn your salary into the exact repayment.
HECS-HELP 2026–27 Key Rates
| Repayment income | Compulsory repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | $9,028 + 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
The nil band means most part-time and early-career earners repay nothing. Note the top band: above $186,051 the marginal system stops and a flat 10% applies to your whole repayment income, not just the part above the threshold. “Repayment income” is more than your salary — it adds back reportable fringe benefits, net investment losses, reportable super contributions and exempt foreign income.
What You’ll Find in This Section
- HECS-HELP Repayment Calculator: your income in, your compulsory annual repayment out — on the current marginal scale
- Repayment Thresholds Table: every 2026–27 band and rate, plus how “repayment income” is built up
- How to Manage Your HELP Debt: checking your balance, making voluntary payments, and telling your employer you have a loan
- Complete guide: how HECS-HELP works end to end — from enrolment to the day the debt clears
In this section:
📋 Thresholds verified — Official source: ATO — Study and training loan repayment thresholds and rates
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the Australian Taxation Office or the Australian Government, and is not responsible for decisions you make based on it.
