Guide · updated 2026-10-22
When do HECS-HELP repayments start?
Repayments begin above $69,528 in 2026-27, and only apply to income above that threshold. What counts as repayment income, and why your payslip deduction differs.
Salary take-home examples use 2026-27 full-year resident employment, the standard work deduction and no additional deductions. Tables explicitly labelled taxable or repayment income start with that amount instead. Methodology and sources.
Compulsory repayments start once your repayment income passes $69,528 in 2026-27. Below that you repay nothing, though your balance is still indexed each 1 June.
You only repay on income above the threshold
This is the part that changed, and a lot of advice online is still wrong about it. Until 2024-25, crossing a threshold meant a percentage of your entire income was taken - earning one dollar more could cost hundreds. From 2025-26 repayments are marginal, exactly like income tax brackets.
| Repayment income | Repayment a year | Per fortnight | Share of income |
|---|---|---|---|
| $60,000 | $0.00 | $0.00 | 0.00% |
| $69,528 | $0.00 | $0.00 | 0.00% |
| $75,000 | $820.80 | $31.57 | 1.09% |
| $90,000 | $3,070.80 | $118.11 | 3.41% |
| $130,000 | $9,076.11 | $349.08 | 6.98% |
| $190,000 | $19,000.00 | $730.77 | 10.00% |
Repayment income is not your salary
It is your taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income. If you salary sacrifice, the sacrificed amount is added back - so sacrificing into super does not reduce your HECS repayment, even though it reduces your taxable income.
Why your payslip deduction does not match
Your employer withholds under a separate schedule that annualises each pay period independently. It cannot know your final repayment income. The withheld amount is held against your assessment, and any difference is settled in your return.
Indexation is a separate thing
- Your balance is indexed on 1 June at the lower of CPI and the wage price index. On 1 June 2026 that was 2.8%.
- The thresholds move on 1 July, which is why the minimum rose from $67,000 to $69,528.
- A one-off 20% reduction was applied to balances as they stood on 1 June 2025, before that year's indexation.
What your repayment would be
Take-home pay
$65,429
a year - $2,517 a fortnight
2026-27 full-year resident employment, standard work deduction, no additional deductions. Assumptions and sources.
| Gross salary | $85,000.00 |
|---|---|
| Income tax | $15,720.00 |
| Medicare levy | $1,680.00 |
| HECS-HELP repayment | $2,170.80 |
| Super paid on top | $10,200.00 |
Where these figures come from
Every number on this page is computed by the same engines that power our calculators, using 2026-27 rates taken from the tax office and dated on our methodology page. If a rate changes, this page changes with it. General information only, not tax or financial advice.