How much will my HECS repayment be under the new system?
For 2026-27 you repay nothing if your repayment income is $69,528 or less. Above that you repay 15c for each dollar over $69,528, then a 17c band from $129,718, and 10% of your whole repayment income from $186,051. On $85,000 that's $2,320.80 for the year. The amount withheld from your pay is only an estimate, and the real figure is worked out when you lodge your tax return.
The short version
- Priya's real 2026-27 repayment is $2,320.80, and her pay withholds about $175 more than that, which comes back to her when she lodges.
- Neither job withholds anything for HELP, so Jack's whole $2,320.80 repayment turns up at tax time.
- From $186,051 the 10% applies to your whole repayment income, not just the part above a line. At $186,050 the formula gives $18,604.61, at $186,051 it's $18,605.10, so the bands join up closely.
You know you have a HECS debt. What you don't know is what you'll actually repay this year, why there's a HELP line on your payslip, and why your tax return seems to have its own opinion about it.
The system changed in 2025-26, so a lot of what you read online is out of date. Here's the 2026-27 version, step by step, using the ATO's own figures.
What changed
Up to 2024-25, your compulsory repayment was a percentage of your whole repayment income once you crossed the threshold. From the 2025-26 income year it's marginal. You only repay on the income above the minimum repayment threshold, a bit like how income tax works.
The ATO's own example: Grace had $80,000 of repayment income in 2025-26. Under the old rules she would have repaid $2,800. Under the new rules it's 15% of the $13,000 above that year's $67,000 threshold, which is $1,950.
The 2026-27 repayment bands
- $0 to $69,528: nil
- $69,529 to $129,717: 15c for each $1 over $69,528
- $129,718 to $186,050: $9,028 plus 17c for each $1 over $129,717
- $186,051 and over: 10% of your total repayment income
The ATO indexes these thresholds each year in line with average weekly earnings, so check the figures for the year you're working out.
How to work out your repayment
- Work out your repayment income. It's your taxable income plus reportable fringe benefits, total net investment losses (including net rental losses), reportable super contributions and exempt foreign employment income. Most people with just a job only have taxable income.
- Find your band in the list above.
- Take away the bottom of your band, multiply by that band's rate, and add the base amount if there is one.
- If you're in the top band, it's simply 10% of the whole amount.
Worked example
Priya, one job, $86,000 salary
Example only. Priya is an example person, an accounts officer in Perth. She earns $86,000 from one employer, paid fortnightly over 26 pays, with the tax-free threshold and her HELP debt on her TFN declaration. She has no work expenses, so the $1,000 standard deduction makes her taxable income $85,000. Nothing else adds to her repayment income.
| Step | Sum | Result |
|---|---|---|
| Repayment income | $86,000 - $1,000 | $85,000 |
| Amount over the threshold | $85,000 - $69,528 | $15,472 |
| 2026-27 compulsory repayment | $15,472 x 15% | $2,320.80 |
| Her fortnightly pay as a weekly figure | $86,000 / 26 = $3,307.69, / 2 = $1,653.85, drop cents = $1,653, plus 99c | $1,653.99 |
| Weekly HELP withheld (ATO formula) | 0.15 x $1,653.99 - $200.5615 = $47.54 | $48 (rounded) |
| HELP withheld for the year | $48 x 2 x 26 | $2,496 |
| Over-withheld | $2,496 - $2,320.80 | $175.20 |
Priya's real 2026-27 repayment is $2,320.80, and her pay withholds about $175 more than that, which comes back to her when she lodges.
Most of the gap comes from the standard deduction lowering her repayment income. The formula coefficients are from the ATO's Schedule 8 for payments from 1 July 2026.
Why the amount taken from your pay can differ
Your employer withholds an extra amount from your pay for HELP once you tell them about the loan. That money isn't sent to your loan each payday. The ATO applies it as a lump sum after you lodge your return and your actual compulsory repayment is worked out. So the two numbers can differ, for a few reasons:
- Each employer only sees its own pay. The withholding formula looks at what that payer pays you, not your total income.
- Deductions aren't in the formula. Withholding is based on your pay, but repayment income starts from taxable income, after deductions. From 2026-27 that includes the new standard deduction of up to $1,000.
- Other items count at tax time. Reportable fringe benefits, reportable super contributions and net rental or investment losses get added to repayment income, but the payslip doesn't know about them.
- Income with no withholding. Side hustle profit, interest and other income can lift your repayment, and nobody withholds for it.
- Rounding. The ATO formula halves your fortnightly pay to a weekly figure, drops the cents, adds 99c, and rounds the weekly amount to the nearest dollar.
- Not telling a payer. If you don't tick the study loan question on your TFN or withholding declaration, nothing is withheld for it.
Two jobs can leave you short
With your main job, where you claim the tax-free threshold, HELP withholding starts at $2,674 a fortnight. With a second job, where you don't claim the threshold, it starts at $1,974 a fortnight. So two smaller jobs can each sit under the line while your total is well over it.
Worked example
Jack, two jobs
Example only. Jack is an example person in Adelaide with two jobs paid fortnightly. Job A pays $61,000 a year and he claims the tax-free threshold there. Job B pays $25,000 a year with no tax-free threshold. He has no work expenses, so the $1,000 standard deduction applies, and nothing else counts in his repayment income.
| Step | Sum | Result |
|---|---|---|
| Job A fortnightly pay | $61,000 / 26 | $2,346.15, under $2,674, so nil HELP withheld |
| Job B fortnightly pay | $25,000 / 26 | $961.54, under $1,974, so nil HELP withheld |
| Repayment income | $61,000 + $25,000 - $1,000 | $85,000 |
| Compulsory repayment | 15% x ($85,000 - $69,528) | $2,320.80 |
Neither job withholds anything for HELP, so Jack's whole $2,320.80 repayment turns up at tax time.
He can avoid the surprise by asking one payer for extra withholding, or setting about $89 a fortnight aside himself ($2,320.80 / 26 = $89.26).
What happens at tax time
When you lodge, the ATO works out your compulsory repayment from your repayment income and shows it on your notice of assessment. It's based on your income alone, not your partner's. Everything withheld from your pay during the year, tax and HELP together, is counted against your tax and your HELP repayment. If too much was withheld you get it back as part of your refund. If too little, you'll have a bill.
Voluntary repayments are a separate thing. They don't reduce your compulsory repayment while you still owe and your income is above the threshold.
Key numbers
| What | Figure and source |
|---|---|
| 2026-27 threshold | Nil to $69,528 ATO |
| 2026-27 17% band | $9,028 plus 17c over $129,717 ATO |
| 2026-27 top band | 10% of total repayment income from $186,051 ATO |
| Marginal system | Only income above threshold ATO |
| Repayment income components | Taxable income plus RFB, net investment losses, RESC, exempt foreign income ATO |
| Grace example | $2,800 before, $1,950 now ATO |
Free official help
- ATO: Study and training support loans rates and repayment thresholds
The official bands and what counts as repayment income. - ATO: Study and training loan repayment calculator
Estimates your compulsory repayment. - ATO: Compulsory repayments
How repayments are worked out and when they hit your loan. - ATO: Study and training loans, what's new
The move to the marginal system and the Grace example. - ATO: Withholding declaration
Tell a payer about your study loan or ask for more to be withheld.
Questions people ask
Is HELP charged on my whole income?
Not any more, unless your repayment income is $186,051 or more. From 2025-26 you only repay on the income above the threshold, which is $69,528 for 2026-27.
Why does my loan balance not go down each payday?
The ATO applies the amount withheld as a lump sum after you lodge your tax return and your compulsory repayment is worked out.
Does my partner's income affect my HELP repayment?
No. The ATO says your compulsory repayment is based on your income alone.
Can I get back HELP that was over-withheld?
Amounts withheld are credited when you lodge. If more was withheld than you owe in tax and HELP, the difference generally comes back to you as part of your refund.
Does a salary sacrifice to super change my repayment?
Reportable super contributions are added back into repayment income, so salary sacrificing doesn't lower it the way you might expect. Check with the ATO or a registered tax agent for your situation.
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Sources
- Study and training support loans rates and repayment thresholds. https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds, accessed 2026-10-16.
- Study and training loans: what's new. https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new, accessed 2026-10-16.
- Compulsory repayments. https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/compulsory-repayments, accessed 2026-10-16.
- Study and training support loans fortnightly tax table. https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-fortnightly-tax-table, accessed 2026-10-16.
- Schedule 8: Statement of formulas for calculating study and training support loans components. https://www.ato.gov.au/tax-rates-and-codes/schedule-8-statement-of-formulas-for-calculating-study-and-training-support-loans-components, accessed 2026-10-16.
- Study and training loan repayment calculator. https://www.ato.gov.au/calculators-and-tools/study-and-training-loan-repayment-calculator, accessed 2026-10-16.
- Withholding declaration. https://www.ato.gov.au/forms-and-instructions/withholding-declaration, accessed 2026-10-16.
- Standard deduction for work-related expenses. https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/standard-deduction-for-work-related-expenses, accessed 2026-10-16.