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HECS repayment rates & thresholds 2026-27

Updated 13 July 2026 · marginal system (from 1 July 2025)

2026-27 rates

From 1 July 2025 HECS/HELP moved to a marginal repayment system — you only repay on income above the threshold, the way income-tax brackets work. These are the 2026-27 figures:

Repayment incomeCompulsory repayment
$0 – $69,528Nil
$69,529 – $129,71715c for each $1 over $69,528
$129,718 – $186,050$9,028 + 17c for each $1 over $129,717
$186,051 and over10% of your total repayment income

→ Work out your own repayment — the calculator itemises your repayment income and applies these rates.

2025-26 rates (the return you lodge now)

Repayment incomeCompulsory repayment
$0 – $67,000Nil
$67,001 – $125,00015c for each $1 over $67,000
$125,001 – $179,285$8,700 + 17c for each $1 over $125,000
$179,286 and over10% of your total repayment income

The thresholds are indexed each year in line with average weekly earnings, which is why 2026-27's nil band ($69,528) is higher than 2025-26's ($67,000).

Worked example (2026-27)

Someone on a repayment income of $100,000: they're in the 15c band, so they pay 15c on each dollar above $69,528. That's 15% × ($100,000 − $69,528) = $4,570.80.

Under the old whole-of-income system the same person would have paid a flat percentage of the entire $100,000 — noticeably more. That's the practical effect of the marginal switch: smaller repayments, and often a refund this tax time because payroll withholding didn't catch up until late September 2025.

Related

Repayment calculator — enter your income and see your exact figure

What counts as repayment income? The salary-packaging trap

Indexation 2026: how 2.8% is added on 1 June

Sources: ATO — repayment thresholds and rates