How HELP repayments work in 2026-27
The Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 changed HELP and other study loans in two ways:
- 20% cut: every HELP, VET Student Loan, SFSS and other study-loan balance that existed on 1 June 2025 was reduced by 20%, applied before the 2025 indexation (which was then recalculated on the lower balance).
- Marginal repayments from 2025-26: instead of a percentage of your whole income, you repay a share of income above the threshold only — like a tax bracket.
| Repayment income 2026-27 | Compulsory repayment |
|---|---|
| $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 total repayment income |
For comparison, 2025-26 used $67,000, $125,000 and $179,285 (with $8,700 at the second step). Thresholds are indexed each year.
Indexation on 1 June
HELP debts carry no interest, but on 1 June each year they are indexed by the lower of CPI and the Wage Price Index. The rate on 1 June 2026 was 2.8% (3.2% in 2025, 4.0% in 2024 after the WPI cap). Voluntary repayments are allowed at any time but no longer earn a bonus.
FAQ
How much HECS will I repay on $100,000 in 2026-27?
15c for each dollar over $69,528: 0.15 × $30,472 = $4,571, about 4.6% of your income.
What is the HECS repayment threshold for 2026-27?
$69,528 of repayment income. Below that you make no compulsory repayment, although your balance is still indexed on 1 June.
How much do I repay on $150,000?
$9,028 + 17c × ($150,000 − $129,717) = $9,028 + $3,448 = $12,476. From $186,051 you repay 10% of your total repayment income, e.g. $20,000 on $200,000.
Was the 20% HECS cut applied?
Yes. The law passed in 2025 cut all study-loan balances that existed on 1 June 2025 by 20%, before indexation. Check your current balance in myGov; the 1 June 2026 indexation of 2.8% was added to the reduced balance.
Sources (checked 5 Nov 2026): ATO, “Study and training support loans rates and repayment thresholds” (ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds), Tables 1 (2026-27) and 2 (2025-26); ATO, “Study and training loan indexation rates” (2.8% on 1 June 2026); ATO newsroom, “Study and training support loan changes are now law” (Aug 2025). Cross-checked with the site’s 2026-27 pay calculator and independent HELP calculators.