HECS on $120,000, step by step
At $120,000 you’re still in the first repayment band, which runs up to $129,717. That keeps the maths friendly: 15c for each dollar above $69,528.
- Income above the threshold: $120,000 − $69,528 = $50,472.
- Repayment: 0.15 × $50,472 = $7,571 for 2026-27.
- That’s 6.3% of your repayment income, about $291 a fortnight.
What happens above $129,717?
The rate on each extra dollar rises to 17c. The formula is $9,028 plus 17c for every dollar over $129,717. At $150,000 that’s $9,028 + 0.17 × $20,283 = $12,476. From $186,051 the system switches to a flat 10% of your whole repayment income.
| Repayment income | Yearly repayment | Share of income | Per fortnight |
|---|---|---|---|
| $110,000 | $6,071 | 5.5% | about $233 |
| $120,000 | $7,571 | 6.3% | about $291 |
| $130,000 | $9,076 | 7.0% | about $349 |
| $140,000 | $10,776 | 7.7% | about $414 |
| $150,000 | $12,476 | 8.3% | about $480 |
| $186,050 | $18,605 | 10.0% | about $716 |
| $200,000 | $20,000 | 10.0% | about $769 |
You might expect a jump at $186,051, but there isn’t one: at $186,050 the formula gives $18,605, and at $186,051 it’s 10% of income, $18,605 as well — the bands were designed to meet smoothly.
A $45,000 balance
The calculator is set to a $45,000 HELP balance, typical of a longer degree after the 20% cut. With 3% pay rises and 2.8% indexation, it would be gone in about 7 years — total repaid $49,695 · paid off around 2033-34. At this income your repayments are well above the yearly indexation (about $1,260 on $45,000), so the balance drops quickly.
Should you pay it off faster?
HELP has no interest — only indexation, which tracks the lower of CPI and wage growth. If you have a mortgage, an offset account or high-interest debt, paying those down usually saves more. But if you’re planning a home loan, lenders count your compulsory HELP repayment as an expense, so a smaller or cleared balance can lift your borrowing power. There’s no single right answer; it depends on your goals.
A quick check of your payslips
At $120,000 your employer should withhold roughly $291 a fortnight for HELP on top of normal tax, if you ticked the HELP box. Withholding is worked out pay by pay, so a big bonus or overtime in one fortnight can push it up for that pay. Any difference is settled when you lodge your tax return.
Thresholds and indexation for future years are not published yet. The payoff estimate assumes the growth rates in the form.
FAQ
How much HECS will I repay on $120,000 in 2026-27?
0.15 × ($120,000 − $69,528) = $7,571, which is 6.3% of your income.
When does the 17% HECS rate start?
At repayment income above $129,717 in 2026-27. You repay $9,028 plus 17c for each dollar over $129,717, until $186,050. From $186,051 you repay 10% of your total repayment income.
How long to repay $45,000 of HELP on $120,000?
About 7 years with 3% pay rises and 2.8% indexation (total repaid $49,695 · paid off around 2033-34).
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.