A HELP debt (still often called HECS) is repaid through the tax system once your income passes a threshold. It doesn't charge interest, but it's indexed once a year, so the balance can still grow.
Here are the 2026-27 repayment rates, how indexation works and a worked example.
2026-27 compulsory repayment rates
| Repayment income | Repayment |
|---|---|
| Up to A$69,528 | Nil |
| A$69,529 – A$129,717 | 15c for each A$1 over A$69,528 |
| A$129,718 – A$186,050 | A$9,028.35 plus 17c for each A$1 over A$129,717 |
| Over A$186,050 | 10% of all repayment income |
Repayment income is your taxable income plus reportable super contributions (such as salary sacrifice), reportable fringe benefits, net investment losses and some exempt foreign income.
Indexation
Each 1 June, the part of your debt that's been owed for more than 11 months is indexed at the lower of CPI and the Wage Price Index. The rate on 1 June 2026 was 2.8%.
Your compulsory repayment for a year is worked out when you lodge your tax return, after that year's indexation. A voluntary repayment that reaches the ATO before 1 June reduces the balance that's indexed.
Worked example
Example: A$30,000 balance, A$80,000 repayment income
Compulsory repayment: 15% × (A$80,000 − A$69,528) = A$1,570.80, about A$60 a fortnight.
Indexation on 1 June: 2.8% × A$30,000 = A$840.
With 3% pay rises, the loan takes about 20 years to clear, including about A$10,240 of indexation.
Paying A$3,000 extra each year before 1 June clears it in 7 years and avoids about A$7,350 of indexation.
A HELP debt also reduces how much a bank will lend you. See the borrowing power calculator.
How to use this calculator
- Enter your HELP balance from myGov.
- Enter your repayment income for the year.
- Add any voluntary repayment you plan to make each year.
- Adjust pay rises and indexation if you want to test other scenarios.
FAQs
When do I start repaying HECS-HELP?
When your repayment income is over A$69,528 in 2026-27. Below that, nothing is due, although indexation still applies each 1 June.
Does HELP charge interest?
No. The balance is indexed once a year on 1 June at the lower of CPI and the Wage Price Index. It was 2.8% in 2026.
What counts as repayment income?
Taxable income plus reportable super contributions (such as salary sacrifice), reportable fringe benefits, net investment losses and some exempt foreign income.
Is it worth paying HELP off early?
It saves indexation, which is usually low. Paying off higher-interest debt or building savings often comes first, but a voluntary payment before 1 June is a safe, guaranteed saving.
Sources
- ATO: Study and training loan repayment thresholds and rates
- StudyAssist: 2.8% indexation applied on 1 June 2026
Results are estimates for Australian residents and aren't tax or financial advice. For your own return, check with a registered tax agent. Spotted a mistake? Tell us.