HECS / HELP Repayment
New marginal system from 1 July 2025
The New HECS/HELP Repayment System (2025–26)
From 1 July 2025, compulsory HECS/HELP repayments use a marginal system — like income tax brackets — instead of the old flat percentage of your whole income. You now repay only on income above each threshold, and nothing at all below $67,000. This removes the old "cliff" where earning a dollar more could cost hundreds.
| Repayment income | Rate on income in band |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15% |
| $125,001 – $179,285 | 17% |
| $179,286 and over | 10% of total income |
Source: ATO / StudyAssist HELP repayment thresholds and rates 2025–26.
Example Repayments (2025–26)
| Income | Annual repayment | Per week | Effective rate |
|---|---|---|---|
| $70,000 | $450 | $8.65 | 0.64% |
| $90,000 | $3,450 | $66.35 | 3.83% |
| $110,000 | $6,450 | $124.04 | 5.86% |
| $125,000 | $8,700 | $167.31 | 6.96% |
| $150,000 | $12,950 | $249.04 | 8.63% |
| $180,000 | $18,000 | $346.15 | 10.00% |
"Repayment income" is broadly your taxable income plus reportable fringe benefits, reportable super contributions and net investment losses. This tool uses taxable income as an estimate.
Frequently Asked Questions
What is the HECS/HELP repayment threshold for 2025–26?
You make no compulsory repayment if your repayment income is below $67,000. Above that, repayments are calculated on a marginal basis: 15% on income between $67,000 and $125,000, and 17% above $125,000.
How is HECS calculated now?
From 1 July 2025 HECS/HELP uses a marginal system. You repay only on income above $67,000, not your whole income. For example, on $90,000 you repay about $3,450 a year.
Is HECS/HELP repayment based on taxable income?
It's based on "repayment income" — taxable income plus reportable fringe benefits, reportable super contributions, and net investment/rental losses. This calculator estimates using taxable income.
Does HECS come out of my pay automatically?
Your employer withholds extra tax during the year if you flag your HELP debt. The actual compulsory amount is worked out when you lodge your return.