HECS-HELP repayment thresholds and rates 2026–27

How the marginal system works

The law (Higher Education Support Act 2003, s154-20) sets the compulsory repayment as the lowest of three amounts:

1. 15% of the part of your repayment income above the minimum ($69,528) up to $129,717, plus 17% of the part above $129,717;
2. 10% of your whole repayment income;
3. what you still owe.

Each extra dollar of income therefore costs 15c, then 17c, then — once the 10% amount is the lower one — only 10c. There are no longer steps where a pay rise of one dollar triggers a higher rate on your whole income, as happened up to 2024–25.

The ATO’s three 2026–27 examples, recalculated

Christina: repayment income $86,380

Taxable income $60,470 + fringe benefits $5,400 + net investment loss $1,330 + reportable super $16,500 + exempt foreign income $2,680 = $86,380. Repayment: 15% × ($86,380 − $69,528) = $2,527.80, as the ATO says. Note: the ATO’s working line shows “$60,720” for taxable income; only the listed $60,470 gives the stated total.

Barry: repayment income $137,064

The ATO writes $9,028 + 17% × $7,347 = $10,276.99. The Act gives 15% × $60,189 = $9,028.35 for the first band, not $9,028, so the exact figure is $9,028.35 + $1,248.99 = $10,277.34. This calculator follows the Act; the difference is 35 cents. Your notice of assessment will show the ATO’s own figure.

Priya: repayment income $254,780

The marginal amount would be $30,289.06, higher than 10% of her income, so she pays 10%: $25,478.00.

$186,051 or $179,286? The figure we use and why

The ATO’s 2026–27 page gives two different starting points for the 10% rate. Its Table 1 says 10% applies from $186,051. The text of its Example 3 (Priya) says her income “is above the threshold of $179,286”.

This site uses $186,051. Reasons:

1. The Act has no third threshold. Section 154-20 of the Higher Education Support Act 2003 (compilation in force from 1 July 2026) only says to take the lower of the 15%/17% amount and 10% of repayment income. The 10% “threshold” is simply the income at which the two amounts are equal.
2. With the 2026–27 figures, that point is $186,051. Solving $9,028.35 + 17% × (income − $129,717) = 10% × income gives $186,050.57, so 10% is lower from $186,051.
3. $179,286 is the 2025–26 switch point. The same sum with the 2025–26 figures ($67,000 and $125,000) gives $179,286 — the figure in the ATO’s 2025–26 table. The example text was not updated.
4. The Department of Education agrees. studyassist.gov.au describes the 2026–27 repayment as 15c and 17c per dollar over $69,528 and $129,717, “or calculating 10% of your income – whichever is lower”.

It matters only between $179,286 and $186,050. Example: at $182,000, the marginal amount is $17,916.46 and 10% would be $18,200.00. The law takes the lower figure, $17,916.46. Reading $179,286 as the 10% threshold would overstate this person’s repayment by $283.54. Priya’s result is the same either way because her income is above both figures.

2025–26 thresholds

Nil up to $67,000; 15c per dollar from $67,001 to $125,000; $8,700 plus 17c per dollar over $125,000 up to $179,285; 10% of repayment income from $179,286. These apply to your 2025–26 tax return (lodged from July 2026).

Old system: 2020–21 to 2024–25

Until 2024–25, one rate applied to your whole repayment income once you passed each threshold. The ATO’s 2024–25 example: Branson, repayment income $99,736, falls in the 5.5% band, so he repays 5.5% × $99,736 = $5,485.48 (the ATO page prints $5,485.52; the product is $5,485.48).