Repaying through the tax system
HELP (often still called HECS) is the Australian Government loan scheme for higher education fees. You do not make repayments until your income reaches a minimum level. After that, a compulsory repayment is calculated each year when you lodge your tax return.
The 2026–27 thresholds
For 2026–27 there is no compulsory repayment if your repayment income is $69,528 or less. Above that, you repay a percentage of each dollar over the threshold. At $100,000 the repayment is $4,570.80.
This marginal system started in 2025–26. Before then, crossing a threshold meant paying a percentage of your entire income, so a small pay rise could trigger a much larger repayment. That no longer happens.
Repayment income is not just your salary
The ATO works out your repayment income by adding together:
- your taxable income;
- reportable fringe benefits;
- total net investment losses, including net rental property losses;
- reportable super contributions, such as salary sacrifice;
- exempt foreign employment income.
Withholding during the year
If you tell your employer you have a study loan, they withhold extra from each pay to cover the expected repayment. This money is not applied to your loan straight away – it is credited when your tax return is assessed.
Indexation and voluntary repayments
HELP debts do not attract interest, but the balance is indexed on 1 June each year to keep pace with the cost of living. You can make voluntary repayments at any time to reduce the balance before indexation is applied.