HELP/HECS marginal rates 2026-27
This page is the detailed method explainer. It focuses on how the 2026-27 marginal repayment system works, how the indexed bands compare with 2025-26, and what the resulting repayment gap looks like at common incomes.
If you searched for the basic trigger point, open the HELP repayment thresholds 2026-27 page first. Use this page when you want the method detail and the 2025-26 vs 2026-27 comparison table.
Looking for the 2025-26 figures instead? See the HELP/HECS repayment rates 2025-26 edition.
2026-27 Marginal Rate System
The marginal system works like income tax brackets. Each rate only applies to income within that band:
| Income Range | Rate | How It Works |
|---|---|---|
| $0 – $69,528 | Nil | No repayment required |
| $69,529 – $129,717 | 15% | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | 17% | $9,028.35 + 17c for each $1 over $129,717 |
| $186,051 + | 10% | 10% of total repayment income |
What changed from 2025-26: thresholds indexed, rates unchanged
See how the indexed 2026-27 bands compare with 2025-26 at common incomes. Rates are unchanged — only the threshold dollar amounts moved:
| Income | 2025-26 Repayment | 2026-27 Repayment | Change |
|---|---|---|---|
| $70,000 | $450 | $71 | -$379 |
| $75,000 | $1,200 | $821 | -$379 |
| $85,000 | $2,700 | $2,321 | -$379 |
| $100,000 | $4,950 | $4,571 | -$379 |
| $120,000 | $7,950 | $7,571 | -$379 |
| $135,000 | $10,400 | $9,926 | -$474 |
| $150,000 | $12,950 | $12,476 | -$474 |
| $180,000 | $18,000 | $17,576 | -$424 |
| $190,000 | $19,000 | $19,000 | No change |
The old flat-rate system (before 1 July 2025)
Before the marginal system arrived, HELP applied a flat percentage to your entire repayment income once you exceeded a threshold:
| Income Range | Rate |
|---|---|
| $0 – $54,434 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,185 | 6.0% |
| $106,186 – $112,556 | 6.5% |
| $112,557 – $119,309 | 7.0% |
| $119,310 – $126,467 | 7.5% |
| $126,468 – $134,056 | 8.0% |
| $134,057 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 + | 10.0% |
Frequently asked questions
How are HELP repayments calculated in 2026-27?
What changed from 2025-26 to 2026-27?
What changed from the old HELP system?
What is the HELP repayment threshold for 2026-27?
Is HELP/HECS interest-free?
Can I make voluntary HELP repayments?
Does my HELP repayment come out of my pay?
Calculate your HELP repayment
Use our HELP/HECS Repayment Calculator to see your exact repayment amount, compare old vs new systems, and estimate years to pay off your debt.
Tax Accuracy & Sources
This page compares the 2026-27 HELP marginal repayment method against the 2025-26 bands and the earlier 2024-25 flat-rate method. It does not calculate actual debt balances or indexation.