HECS Repayment Calculator Australia 2026-27
Use this HECS repayment calculator Australia to work out your compulsory study and training loan repayment for 2026–27 — on the current marginal thresholds, straight from the ATO’s own rates.
Last updated: August 2026 · ATO study and training loan thresholds · FY 2026–27
Repayment income = taxable income + reportable fringe benefits + net investment loss + reportable super contributions + exempt foreign income. For most people it’s simply their taxable income.
Got your number? Two things worth checking next
→ The full threshold table — every band and rate, and exactly what counts as repayment income. → Your real take-home pay — net pay after tax, Medicare and your HELP repayment.How Your HECS-HELP Repayment Is Worked Out
There is no interest on a HECS-HELP loan and no repayment at all until your income is high enough. Once your repayment income passes $69,528 for 2026–27, the ATO works out a compulsory repayment and applies it against your loan when you lodge your tax return. Your employer normally withholds a little extra from each pay so you are not hit with a lump sum — but that withholding is only an estimate, and everything squares up when your return is assessed.
Since the 2025–26 year the calculation is marginal. Instead of one rate on your whole income, you pay a rate only on the slice of income above the threshold: 15c in the dollar between $69,528 and $129,717, then $9,028 plus 17c in the dollar up to $186,050. There is one exception at the top — above $186,051 a flat 10% applies to your entire repayment income. Because “repayment income” adds back reportable fringe benefits, net investment losses, reportable super contributions and exempt foreign income, it can be higher than the salary on your payslip, so it is worth checking all five components.
Your outstanding balance is indexed once a year, on 1 June, so it keeps pace with inflation rather than earning interest. Voluntary payments reduce the balance straight away and there is no penalty for making them. When your compulsory repayments and any voluntary payments finally clear the debt, the deductions stop automatically at your next assessment.
HECS-HELP Repayment Thresholds 2026–27
| 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 total repayment income |
Source: ATO — Study and training loan repayment thresholds and rates (2026–27), verified August 2026. Thresholds are updated each financial year.
Frequently Asked Questions
At what income do I start repaying HECS?
For 2026–27 the first threshold is $69,528 of repayment income. Below it, no compulsory repayment is due (though your balance is still indexed on 1 June). The threshold is lifted each financial year.
Is the repayment 15% of my whole salary?
No — not since the system became marginal in 2025–26. Between $69,528 and $129,717 you repay 15c only on each dollar above $69,528, so someone on $85,000 repays about $2,528, not 15% of the lot. The only exception is at the very top: above $186,051 a flat 10% applies to your entire repayment income.
What counts as “repayment income”?
It is your taxable income plus four add-backs: reportable fringe benefits, total net investment loss (including net rental losses), reportable super contributions and exempt foreign employment income. For most workers with none of those, repayment income equals taxable income.
Does my HECS debt charge interest?
No. A HECS-HELP loan is interest-free. Instead, the outstanding balance is indexed once a year on 1 June so it holds its real value against inflation. Voluntary payments reduce the balance immediately and carry no penalty.
Also in Australia:
📋 Rates 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.
