HECS / HELP Loan
Repayment Calculator

2026–27 ATO Rates

HECS-HELP Debt · $69,528 Threshold (2026–27) · Marginal Brackets · Annual Indexation · Free

By Velofy Tax Desk · How we check our figures · Last updated: 19 October 2026 (2026–27 rates)

Calculate My Repayment Tax Calculator
2026–27 minimum repayment threshold 69.5k

The income threshold rose from $54,435 to $67,000 in 2025–26 and is $69,528 for 2026–27. See your exact repayment, effective rate and payoff year.

2026–27 Rates Marginal Brackets 20% Cut Applied
Calculations based on
HECS-HELP Repayment Advisor

Know exactly when your HECS debt will be paid off

ATO 2026–27 marginal brackets, CPI indexation, and voluntary repayment modelling — instant, private, free.

Your HECS-HELP Balance
20% reduction applied June 2025. Enter your current balance — the ATO applied the one-off 20% cut automatically. Check myGov for your updated figure.
$
Your Income

Use your total repayment income — salary, investment income, and reportable fringe benefits.

$
Projection Assumptions
%
June 2026 rate: 2.8% (2025: 3.2%)
%
Per year, assumed
$
Optional — on top of compulsory repayment
☷

Enter your HECS balance and income, then click Calculate to see your compulsory repayment, effective rate, and full payoff timeline.

Pay Early or Keep the Money?

Should you pay off HECS early, or keep the money?

Paying a lump sum off HECS saves indexation (2.8% for 2026), and that saving isn't taxed. Keeping the money means it earns interest instead. This compares the two with the balance and income you entered above.

The money you could pay
$
% p.a.
RBA cash rate: 4.60% (since 29 Sep 2026). Use your own account's rate.
Example: $27,200 balance, $85,000 income
—
Indexation saved by paying early—
HECS paid off—
Kept, the lump sum grows to—

A voluntary payment can't be taken back. Paying before 1 June avoids that year's indexation on the amount paid. Compulsory repayments depend on your income, not your balance, so paying early doesn't lower them: it ends them sooner. General information only; indexation and interest rates change.

HECS Changes Since 2025

What changed in HECS-HELP, and the 2026–27 figures

Repayments moved to a marginal system on 1 July 2025, balances were cut by 20%, and the threshold rose again for 2026–27.

$69,528

2026–27 repayment threshold

Up from $67,000 in 2025–26. Earn below $69,528? No compulsory repayment. Indexation still applies.

Marginal rates

Flat-rate system replaced in 2025–26

For 2026–27: 15c per $1 from $69,528 to $129,717, then 17c per $1 to $186,050. Above $186,050: 10% of total income. At $85,000 the 2026–27 repayment is $2,321. Under the 2024–25 flat-rate system, $85,000 meant $3,825.

−20%

One-off debt cut (Aug 2025)

Every HECS/FEE/VET/OS/SA-HELP balance cut 20% automatically on 1 June 2025. Not recurring. Check your balance via myGov before calculating.

2.8%

2026 indexation rate

Indexed once a year on 1 June by the lower of CPI or WPI (ATO). Voluntary repayments before 1 June reduce the balance that gets indexed.

Salary-sacrifice into super Drop into a lower HECS bracket by reducing taxable income Open super calculator → Deductions reduce repayment income Claiming more deductions lowers the income HECS measures Open tax calculator → HECS Indexation 2026: How Much Did Your Debt Grow? What the 2.8% indexation on 1 June 2026 added, in dollars Read the blog post →
2026–27 Repayment Rates

HECS-HELP repayment brackets

Since 2025–26, HECS repayments use a marginal bracket system: you only pay on income above each threshold, like income tax. The 2026–27 brackets are below. They apply to HECS-HELP, FEE-HELP, VET Student Loans, OS-HELP, SA-HELP and Australian Apprenticeship Support Loans.

Repayment Income Repayment Rate Calculation Max Repayment in Bracket
Below $69,528 Nil No compulsory repayment $0
$69,529 – $129,717 15% marginal 15¢ per $1 over $69,528 $9,028
$129,718 – $186,050 17% marginal $9,028 + 17¢ per $1 over $129,717 $18,605
$186,051 and above 10% flat 10% of total repayment income No cap
How the threshold has moved: $54,435 in 2024–25, $67,000 in 2025–26 (when the marginal brackets started) and $69,528 in 2026–27. You only pay on income above the threshold, not on your full income. The top bracket ($186,051 and above) is the exception: 10% applies to your entire repayment income.
Common Questions

HECS repayment calculator FAQ

What is the minimum income threshold for HECS repayment in 2026–27?
$69,528, up from $67,000 in 2025–26. If your repayment income for the year is under $69,528, you don't have to make a compulsory repayment. Repayment income is your taxable income plus a few add-backs, such as fringe benefits and salary-sacrificed super. Your debt keeps growing with indexation in the meantime.

How is HECS repayment calculated under the 2026–27 marginal system?
Since 1 July 2025, HECS repayments work like income tax brackets: you only repay on the part of your income above each threshold. For 2026–27 you repay 15 cents for every dollar between $69,528 and $129,717 (up to $9,028), then $9,028 plus 17 cents for every dollar from $129,718 to $186,050. Above $186,050 it changes: you repay 10% of your whole repayment income, not just the part above the threshold.

Does HECS-HELP debt attract interest?
Not interest as such, but the debt grows each year. On 1 June the ATO adds indexation, set by the lower of the consumer price index and the wage price index. The rate added on 1 June 2026 was 2.8%, down from 3.2% in 2025. On a $25,000 debt that's $700 a year, before any repayments.

What was the 20% HECS debt reduction in 2025?
A one-off 20% cut to student loan balances as they stood on 1 June 2025, covering HECS-HELP, FEE-HELP, VET Student Loans, OS-HELP, SA-HELP and Australian Apprenticeship Support Loans. It became law on 2 August 2025 and the ATO applied it automatically, so you didn't need to do anything. It won't happen again, so enter your balance after the cut in the calculator.

Can I make voluntary HECS-HELP repayments to pay off my debt faster?
Yes. You can make voluntary repayments to the ATO at any time through myGov or BPAY, and they come off your balance straight away. There's no bonus for paying early any more (it ended on 1 January 2017). Paying before 1 June means that year's indexation isn't added to the amount you paid. The extra repayment box in the calculator above shows the effect.

Should I pay off my HECS early?
It depends on what the money would earn instead. Paying early saves indexation, 2.8% for 2026, and that saving isn't taxed. If the money would earn less than that after tax, paying early comes out ahead; if it would earn more, keeping it does. Compulsory repayments depend on your income, not your balance, so paying early doesn't lower them: it ends them sooner. A voluntary payment can't be taken back. The pay-early section above works it out with your own balance and income.
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