HECS Repayment Thresholds Australia 2026-27
The HECS repayment thresholds Australia workers need for 2026–27: the income at which compulsory repayments start, every marginal band above it, and exactly what the ATO counts as your “repayment income.”
Last updated: August 2026 · ATO study and training loan thresholds · FY 2026–27
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How to Read This Table
Find the row your repayment income falls in. From 2025–26 the rates are marginal: you pay the rate only on the income above the band’s floor, not on your whole income — except in the top band ($186,051+), where a flat 10% applies to everything. Below $69,528 you repay nothing.
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, Table 1 (verified August 2026).
Last Year for Comparison: 2025–26
The first threshold rose from $67,000 to $69,528 — so an income that triggered a repayment last year may fall under the line this year.
| Repayment income (2025–26) | Compulsory repayment |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c for each $1 over $67,000 |
| $125,001 – $179,285 | $8,700 + 17c for each $1 over $125,000 |
| $179,286 and over | 10% of total repayment income |
Understanding Your Repayment Income
The figure that decides your repayment is not just the salary on your payslip. Your repayment income is your taxable income plus four add-backs, and each can push you into a higher band:
- Reportable fringe benefits — the grossed-up value shown on your income statement
- Total net investment loss — including net rental losses
- Reportable super contributions — salary-sacrificed and voluntary concessional amounts
- Exempt foreign employment income
If you have none of these, your repayment income equals your taxable income. The loan is interest-free; the balance is indexed once a year on 1 June, and voluntary payments reduce it immediately with no penalty.
Frequently Asked Questions
What is the HECS repayment threshold for 2026-27?
$69,528. Below that repayment income you make no compulsory repayment; above it you repay 15c on each dollar over the threshold, rising through the higher bands.
How much did the threshold change from last year?
The first threshold rose from $67,000 in 2025–26 to $69,528 in 2026–27. The bands above it moved up too, so a given income generally repays a little less than it did last year.
Do all study loans use the same thresholds?
Yes. HELP, VET Student Loans, SFSS, Student Start-up Loans and the Australian Apprenticeship Support Loan all share the one set of thresholds and rates for each financial year, and compulsory repayments are applied to them in a set order.
Is it a flat percentage of my income?
Only in the top band. From 2025–26 the system is marginal, so between $69,528 and $186,050 you pay a rate only on the income above each floor. At $186,051 and over, a flat 10% applies to your whole repayment income.
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.
