What is the HECS repayment threshold?
The HECS-HELP repayment threshold is the repayment income level at which you must start making compulsory repayments on your HECS-HELP loan. For 2026-27 the minimum threshold is $69,528. If your repayment income is at or below this, no compulsory repayment applies — you can still make voluntary repayments at any time.
The threshold is indexed each year by the ATO (the 2025-26 threshold was $67,000, and the 2026-27 threshold is $69,528). Indexation is based on the lower of CPI or WPI, capped by the Higher Education Support Act changes passed in November 2024.
How is repayment income calculated?
Repayment income is not simply your taxable income. The ATO adds back: reportable fringe benefits, reportable super contributions, total net investment losses (including net rental losses), and exempt foreign employment income. It then subtracts any First Home Super Saver (FHSS) released amounts.
If you hold a HECS-HELP loan and your repayment income exceeds the threshold, your compulsory repayment is calculated on the income above it: 15 cents per dollar up to $129,717, then 17 cents per dollar up to $186,050, and 10% of your total repayment income beyond that. Your employer withholds an estimate from your pay, and the actual amount is settled when you lodge your tax return.
Full 2026-27 repayment threshold table
The ATO publishes the following repayment income thresholds and rates for 2026-27:
Check your own repayment
Use the calculator to work out your exact compulsory repayment at your income: use the HECS-HELP calculator. If you earn a common salary, jump straight to $50,000 or $55,000 or $60,000 or $65,000 or $70,000.