HELP repayments are compulsory once your repayment income exceeds the threshold. Your employer withholds repayments from your pay through the PAYG system if they know about your HELP debt. Repayment income includes:
→Taxable income
→Reportable fringe benefits
→Reportable employer super contributions
→Net investment losses (added back)
This is usually higher than your taxable income if you salary sacrifice or receive fringe benefits.
2025-26 vs 2024-25: what changed?
Old system (2024-25)
•Flat rate on total income
•Threshold: $54,435
•Rates: 1% to 10%
•Rate applies to ALL income once threshold crossed
New system (2025-26)
•Marginal rate on income above threshold
•Threshold: $67,000
•Rates: 15% to 17% (on excess only)
•You only pay on the amount OVER $67,000
Old system ($80k income)$80,000 × 3.5% = $2,800
New system ($80k income)$13,000 × 15% = $1,950
Annual saving$850/year
2026-27 thresholds (from 1 July 2026)
For the 2026-27 year the minimum repayment income rises to $69,528.00, indexed from $67,000. Repayments stay on the marginal system — you only pay on income above the threshold:
Repayment income
Marginal rate (on amount over $69,528.00)
Below $69,528.00
Nil
$69,529.00 – $129,717.00
15%
$129,718.00 – $186,050.00
17%
$186,051.00 and over
10% (or 10% of total income, whichever is lower)
Worked examples for 2026-27:
$80,000.00 income
Above threshold: $10,472.00
Annual repayment: $1,570.80
Effective rate: 2.0% of income
$110,000.00 income
Above threshold: $40,472.00
Annual repayment: $6,070.80
Effective rate: 5.5% of income
$150,000.00 income
Above threshold: $80,472.00
Annual repayment: $12,476.46
Effective rate: 8.3% of income
20% debt reduction & CPI indexation
→20% reduction (1 June 2025): Applies to all outstanding HELP, HECS-HELP, FEE-HELP, VET Student Loans, and other eligible study debts. Automatic — no application needed. ATO will notify you via myGov.
→CPI indexation (1 June annually): Your HELP debt is adjusted each 1 June by the Consumer Price Index. Recent rates: 7.1% (2023), 4.7% (2024), 3.2% (2025). In high-inflation years your balance can grow faster than repayments.
→Voluntary repayments: No direct discount applies since 2017. However, paying before 1 June reduces the balance before CPI is applied — saving you more over the life of the loan. The calculator models this impact.
FAQ
What changed for HELP repayments in 2025-26?
From 2025-26, HELP repayments switched from a flat rate on total income to a marginal rate system. You now only pay on income above $67,000 (up from $54,435). This means lower repayments for most borrowers, especially those earning under $180,000.
What is repayment income for HELP?
Repayment income includes your taxable income plus reportable fringe benefits, reportable employer super contributions, and any net investment losses (added back). It's usually higher than your taxable income if you salary sacrifice or have fringe benefits.
Do I have to make HELP repayments?
HELP repayments are compulsory once your repayment income exceeds the threshold ($67,000 for 2025-26). They're automatically withheld from your pay if your employer knows about your HELP debt. You can also make voluntary repayments at any time.
Will my HELP debt get a 20% reduction?
Yes, from 1 June 2025, all outstanding HELP, HECS, VET Student Loans, and other eligible study debts receive a 20% reduction. This is automatic - you don't need to apply. The ATO will notify you via myGov.
Should I make voluntary repayments?
HELP debt is interest-free (it only increases with CPI indexation, which was capped at the lower of CPI or WPI from 2023). In most cases, it's better to invest extra money elsewhere rather than make voluntary repayments, unless you want to reduce your debt before applying for a home loan.
How does CPI indexation affect my HELP debt?
Your HELP debt is indexed on 1 June each year based on the Consumer Price Index (CPI). Recent indexation rates were: 7.1% (2023), 4.7% (2024), 3.2% (2025). High indexation can cause your debt to grow faster than your repayments, especially at lower incomes. Use the calculator to see how indexation affects your payoff timeline.
Should I make voluntary HELP repayments?
Since the voluntary repayment bonus was removed in 2017, there is no direct discount for paying extra. However, voluntary payments reduce the balance that gets indexed each June, saving you money over time. Use the calculator's voluntary repayment feature to see exactly how much indexation you would save and how many years earlier you could pay off your debt.
What is the HELP repayment threshold for 2026-27?
From 1 July 2026 the minimum repayment income rises to $69,528 (indexed from $67,000). You repay 15% of income between $69,528 and $129,717, then 17% above that, capped at 10% of total repayment income — whichever is lower.
What is STSL?
STSL stands for Study and Training Support Loans — the ATO's collective term covering HELP/HECS, VET Student Loans, SFSS, SSL and TSL. If you've notified your employer of a study loan on your TFN declaration (or withholding declaration), they withhold an 'STSL component' from each pay through PAYG. That withholding is only an estimate based on your repayment income; your actual compulsory repayment is worked out on your tax return against the annual thresholds, and any amount over-withheld comes back to you as part of your refund.
Applies the 2025-26 HELP marginal repayment framework to the income inputs you enter. It does not calculate actual debt balances, indexation notices, or employer payroll setup.