Updated 2026–27 ATO marginal rates
HECS / HELP Repayment Calculator (2026–27)
Work out your compulsory study and training support loan repayment for 2026–27, using the ATO's published marginal rates. Enter your repayment income — not just your salary — for an accurate figure.
What this works out: the amount you must repay this year out of your income — not your remaining loan balance. Your balance is shown in your ATO online account, and it grows with indexation on 1 June each year.
1 Enter your income 2 See the repayment you owe
You can try it now — it is pre-filled with $90,000, which gives a repayment of $3,070.80 for the year. Change the number and the answer updates instantly.
Fill in what applies to you — leave the rest at 0. The totals are added together for you.
Step 2 · your result
Estimated compulsory repayment
$0.00
per year
- Repayment income
- $0
- No repayment below
- $0
- Marginal rate applied
- —
- Total for the year
- $0
Calculation method: ATO study and training support loan repayment thresholds and rates, checked 11 October 2026. This tool gives a general estimate and is not tax advice.
Earning under the threshold? Your debt still grows
No compulsory repayment is taken if your repayment income is at or below $69,528. But on 1 June each year the ATO still applies indexation to the part of your loan unpaid for more than 11 months, using the lower of CPI or the Wage Price Index. In the ATO's own words, your loan will grow over time if you don't make compulsory or voluntary repayments. A year below the threshold is not a year where your balance stands still.
Which study loans does this cover?
Since 1 July 2019, every Australian Government study and training support loan shares the same repayment thresholds and rates. This calculator applies to all of them:
- HECS-HELP — Commonwealth supported places
- FEE-HELP — full-fee paying places
- VET Student Loans
- Trade Support Loans
- Student Start-up Loan
- SA-HELP — student services and amenities
- OS-HELP — overseas study
- Student Financial Supplement Scheme (SFSS) — closed scheme, old debts
Some older calculators still ask you to choose a loan type. Before 2019 the thresholds differed, so the choice mattered. Since 2019 it makes no difference to the answer — which is why this calculator does not ask.
Repayment thresholds and rates for 2026–27
The current income year uses marginal rates: each band only applies to the income above its starting point. Only the top band is charged as a percentage of your whole repayment income.
| Repayment income | Repayment on this income |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
Previous year: 2025–26
Keep these figures handy if you are checking a prior year's tax return or a Notice of Assessment.
| Repayment income | Repayment on this income |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c for each $1 over $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of your total repayment income |
Older years (2020–21 to 2024–25) — a different system
This is where most older calculators get it wrong. Before 2025–26, repayments were not marginal — a single rate was applied to your entire repayment income. So the same salary produced a very different repayment.
| Repayment income | 2024–25 (old: single rate on the whole amount) | 2026–27 (current: marginal) | Difference |
|---|---|---|---|
| $50,000 | $0.00 | $0.00 | — |
| $70,000 | $1,750.00 | $70.80 | − $1,679.20 |
| $90,000 | $4,500.00 | $3,070.80 | − $1,429.20 |
| $120,000 | $9,000.00 | $7,570.80 | − $1,429.20 |
| $160,000 | $16,000.00 | $14,176.11 | − $1,823.89 |
At $90,000 the old system charged $4,500.00; under the current marginal system it is $3,070.80 — a saving of $1,429.20. Anyone comparing an old Notice of Assessment against a newer calculator needs to know which system they are looking at.
Full bands for each earlier year
These are the ATO's published bands. In these years the rate was applied to your whole repayment income, not just the part above a threshold.
2024–25 — minimum threshold $54,435, rates 1.0% to 10.0%
| Repayment income | Repayment rate (% of total income) |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,185 | 6.0% |
| $106,186 – $112,556 | 6.5% |
| $112,557 – $119,309 | 7.0% |
| $119,310 – $126,467 | 7.5% |
| $126,468 – $134,056 | 8.0% |
| $134,057 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 and above | 10.0% |
2023–24 — minimum threshold $51,550, rates 1.0% to 10.0%
| Repayment income | Repayment rate (% of total income) |
|---|---|
| Below $51,550 | Nil |
| $51,550 – $59,518 | 1.0% |
| $59,519 – $63,089 | 2.0% |
| $63,090 – $66,875 | 2.5% |
| $66,876 – $70,888 | 3.0% |
| $70,889 – $75,140 | 3.5% |
| $75,141 – $79,649 | 4.0% |
| $79,650 – $84,429 | 4.5% |
| $84,430 – $89,494 | 5.0% |
| $89,495 – $94,865 | 5.5% |
| $94,866 – $100,557 | 6.0% |
| $100,558 – $106,590 | 6.5% |
| $106,591 – $112,985 | 7.0% |
| $112,986 – $119,764 | 7.5% |
| $119,765 – $126,950 | 8.0% |
| $126,951 – $134,568 | 8.5% |
| $134,569 – $142,642 | 9.0% |
| $142,643 – $151,200 | 9.5% |
| $151,201 and above | 10.0% |
2022–23 — minimum threshold $48,361, rates 1.0% to 10.0%
| Repayment income | Repayment rate (% of total income) |
|---|---|
| Below $48,361 | Nil |
| $48,361 – $55,836 | 1.0% |
| $55,837 – $59,186 | 2.0% |
| $59,187 – $62,738 | 2.5% |
| $62,739 – $66,502 | 3.0% |
| $66,503 – $70,492 | 3.5% |
| $70,493 – $74,722 | 4.0% |
| $74,723 – $79,206 | 4.5% |
| $79,207 – $83,958 | 5.0% |
| $83,959 – $88,996 | 5.5% |
| $88,997 – $94,336 | 6.0% |
| $94,337 – $99,996 | 6.5% |
| $99,997 – $105,996 | 7.0% |
| $105,997 – $112,355 | 7.5% |
| $112,356 – $119,097 | 8.0% |
| $119,098 – $126,243 | 8.5% |
| $126,244 – $133,818 | 9.0% |
| $133,819 – $141,847 | 9.5% |
| $141,848 and above | 10.0% |
2021–22 — minimum threshold $47,014, rates 1.0% to 10.0%
| Repayment income | Repayment rate (% of total income) |
|---|---|
| Below $47,014 | Nil |
| $47,014 – $54,282 | 1.0% |
| $54,283 – $57,538 | 2.0% |
| $57,539 – $60,991 | 2.5% |
| $60,992 – $64,651 | 3.0% |
| $64,652 – $68,529 | 3.5% |
| $68,530 – $72,641 | 4.0% |
| $72,642 – $77,001 | 4.5% |
| $77,002 – $81,620 | 5.0% |
| $81,621 – $86,518 | 5.5% |
| $86,519 – $91,709 | 6.0% |
| $91,710 – $97,212 | 6.5% |
| $97,213 – $103,045 | 7.0% |
| $103,046 – $109,227 | 7.5% |
| $109,228 – $115,781 | 8.0% |
| $115,782 – $122,728 | 8.5% |
| $122,729 – $130,092 | 9.0% |
| $130,093 – $137,897 | 9.5% |
| $137,898 and above | 10.0% |
2020–21 — minimum threshold $46,620, rates 1.0% to 10.0%
| Repayment income | Repayment rate (% of total income) |
|---|---|
| Below $46,620 | Nil |
| $46,620 – $53,826 | 1.0% |
| $53,827 – $57,055 | 2.0% |
| $57,056 – $60,479 | 2.5% |
| $60,480 – $64,108 | 3.0% |
| $64,109 – $67,954 | 3.5% |
| $67,955 – $72,031 | 4.0% |
| $72,032 – $76,354 | 4.5% |
| $76,355 – $80,935 | 5.0% |
| $80,936 – $85,792 | 5.5% |
| $85,793 – $90,939 | 6.0% |
| $90,940 – $96,396 | 6.5% |
| $96,397 – $102,179 | 7.0% |
| $102,180 – $108,309 | 7.5% |
| $108,310 – $114,809 | 8.0% |
| $114,810 – $121,698 | 8.5% |
| $121,699 – $128,999 | 9.0% |
| $129,000 – $136,739 | 9.5% |
| $136,740 and above | 10.0% |
What counts as repayment income?
The ATO does not use your salary alone. Your repayment income is the total of all of the following:
- Taxable income (excluding any assessable First Home Super Saver released amounts)
- Reportable fringe benefits (regardless of the exempt status of your employer)
- Total net investment loss (including net rental losses)
- Reportable super contributions
- Exempt foreign employment income amounts
This is why your repayment can be higher than you expect: salary sacrificing into super, negative gearing, or reportable fringe benefits (such as a novated lease car) all increase your repayment income.
Worked example
Priya has a repayment income of $150,000 in 2026–27. She falls in the third band, so her repayment is:
- Base amount for the band: $9,028
- Plus 17c for every $1 over $129,717: $150,000 − $129,717 = $20,283 → $20,283 × 0.17 = $3,448
- Total compulsory repayment: $12,476
The formula
Every figure this calculator produces comes from one formula, applied to the band your income falls into:
repayment = base + (repayment income − threshold) × rate
The base, threshold and rate are fixed amounts published by the ATO for each income band. Only the part of your income above the threshold is multiplied by the rate — which is why this is called a marginal calculation. The top band is the exception: it is 10% of your whole repayment income.
Where each number comes from (2026–27)
| If your repayment income is | Base | Threshold | Rate |
|---|---|---|---|
| $0 – $69,528 | $0 | $0 | Nil |
| $69,529 – $129,717 | $0 | $69,528 | 15c per $1 |
| $129,718 – $186,050 | $9,028 | $129,717 | 17c per $1 |
| $186,051 and over | — | — | 10% of total |
Base, threshold and rate are taken directly from the ATO's published bands — the same numbers shown in the tables above. Nothing is estimated or approximated.
Two formulas: what you repay, and how long it takes
These are separate questions, and the answers behave differently.
repayment = base + (income − threshold) × rate
1. How much you repay — depends only on your income. Your loan balance does not appear in this formula at all. Borrow $20,000 or $120,000 and the annual repayment is the same.
years to clear = balance ÷ repayment
2. How long it takes — this is where the balance matters. With indexation it becomes a repeat-until-done calculation, because the balance grows each 1 June:
balance = balance × (1 + indexation) − repayment
Repeat that line once per year until the balance reaches zero. That is exactly what the calculator above does — and why a bigger balance can take disproportionately longer, since indexation is charged on the whole balance while your repayment stays fixed.
Indexation is set each year using the lower of CPI or the Wage Price Index, so any multi-year projection is an estimate based on the rate you choose. Use 0% to see the raw effect of your repayments alone.
Will it ever actually be paid off?
There is one more formula, and it sets a floor on what you must earn. Indexation is charged on your whole balance, but your repayment is fixed by your income. If indexation adds more than you repay, the balance grows — permanently.
break-even: repayment > balance × indexation
Below that line you are going backwards. Because repayment is a function of income, this translates into a minimum income for any given balance. At an assumed 2.8% indexation, that is:
| Your balance | Annual repayment at $90,000 income | Time to clear (no indexation) | Time to clear (2.8% indexation) | Minimum income for this balance |
|---|---|---|---|---|
| $20,000 | $3,070.80 | ≈ 6 years 6 months | ≈ 7 years 3 months | $73,261 |
| $30,000 | $3,070.80 | ≈ 9 years 9 months | ≈ 11 years 7 months | $75,128 |
| $50,000 | $3,070.80 | ≈ 16 years 3 months | ≈ 22 years | $78,861 |
| $80,000 | $3,070.80 | ≈ 26 years 1 month | ≈ 47 years 4 months | $84,461 |
| $100,000 | $3,070.80 | ≈ 32 years 7 months | ≈ 87 years 11 months | $88,195 |
| $120,000 | $3,070.80 | ≈ 39 years 1 month | never clears | $91,928 |
| $150,000 | $3,070.80 | ≈ 48 years 10 months | never clears | $97,528 |
Break-even income is derived by inverting the ATO’s published band formula: the repayment must exceed balance × indexation, and the income needed to produce that repayment is solved from the same bands shown above. Because indexation changes every year, treat these as illustrative at 2.8%.
Frequently asked questions
What is the HECS / HELP repayment threshold for 2026–27?
For the 2026–27 income year the minimum repayment threshold is $69,528. If your repayment income is at or below that amount, you make no compulsory repayment. Above it, repayments are calculated using marginal rates — only the income above each threshold is charged at that rate.
Is the repayment a percentage of my whole income?
No — not since 2025–26. Before that, a single rate was applied to your entire repayment income. From 2025–26 onwards repayments use marginal rates, so only the dollars above each threshold attract that rate. The one exception is the top band, which is 10% of your total repayment income.
What income counts towards my HECS / HELP repayment?
Your repayment income is the sum of: taxable income (excluding any assessable First Home Super Saver released amounts); reportable fringe benefits (regardless of the exempt status of your employer); total net investment loss (including net rental losses); reportable super contributions; exempt foreign employment income amounts. This is usually higher than your taxable income if you salary sacrifice into super, have reportable fringe benefits, or have net investment losses such as negative gearing on an investment property.
Why is there a minimum repayment threshold at all?
Study and training support loans are income-contingent: you are only required to repay once your income reaches a minimum level. In 2026–27 that is $69,528. If your repayment income is at or below it, no compulsory repayment is taken — so unemployment, part-time work, low-paid work or returning to study will not see you chased for a debt. The threshold is adjusted each year, and has risen from $54,435 in 2024–25 to $69,528 in 2026–27.
If I earn below the threshold, does my debt still grow?
Yes — and this catches a lot of people out. On 1 June each year the ATO applies indexation to the part of your loan unpaid for more than 11 months, using the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). The ATO states plainly that your loan will grow over time if you do not make compulsory or voluntary repayments. So earning under the threshold means no repayment is taken, but the balance still rises in line with inflation and wages.
How much will I repay on a $90,000 salary?
If your repayment income is $90,000 in 2026–27, you are in the 15c band. Your repayment is 15 cents for every dollar over $69,528, which is about $3,071 for the year. Use the calculator above for your exact figure.
Do I still repay HECS if I work overseas?
Yes. From the 2016–17 income year, people with a study and training support loan who are overseas for more than 183 days in a 12-month period must lodge an overseas levy return. Repayment obligations generally continue while you have a debt.
Does a HECS debt affect my home loan application?
It is not treated as consumer debt the way a credit card is, but compulsory repayments reduce your take-home pay, which lenders assess when calculating your borrowing capacity. A large HECS balance can therefore lower how much a bank will lend you.
How accurate is this calculator?
It applies the ATO's published marginal rates for 2026–27 and 2025–26, last checked 11 October 2026. It is a general estimate only — it does not account for every individual circumstance and is not tax advice. Confirm your figure with the ATO or a registered tax agent.
Sources
- Australian Taxation Office — Study and training loan repayment thresholds and rates (checked 11 October 2026)
- Australian Taxation Office — Study and training loan indexation rates (checked 11 October 2026)
Aussie Calculators is an independent calculator site and is not affiliated with the Australian Taxation Office. Figures are provided as general information only and do not constitute tax or financial advice.