HELP Repayment on $130,000 (2026-27)

Repayment Breakdown

Pay Frequency Breakdown

2026-27 Thresholds

How the 2026-27 System Works

At $130,000 you fall in the marginal repayment tiers: you repay only on income above $69,528, giving a $9,076 repayment, or 6.98% of total income.

The 2026-27 HELP system is marginal. That means you only repay on income above the threshold, not on your entire income. Repayment rates rise across tiers, and above $186,051.00 a flat 10% rate applies to total repayment income.

What counts as repayment income

Your compulsory repayment is worked out on repayment income, not on taxable income. The ATO builds repayment income by adding five amounts together: taxable income (excluding any assessable First Home Super Saver amounts released to you), reportable fringe benefits — counted whether or not your employer is exempt from fringe benefits tax — total net investment loss including net rental losses, reportable super contributions, and exempt foreign employment income. The $130,000 on this page is that combined figure, not your base salary.

That definition is why salary sacrificing does not move a compulsory repayment. Sacrifice $10,000 of salary into super and your taxable income falls to $120,000, but the sacrificed amount is a reportable super contribution and is added straight back, so your repayment income stays at $130,000.

If that sacrifice did reduce repayment income, your repayment would fall to $7,571 — $1,506 less. It does not, so the compulsory repayment on your assessment stays at $9,076. The same add-back catches salary-packaged benefits, which return through reportable fringe benefits, and negatively geared property, whose net rental loss lowers taxable income but is added back into repayment income.

What a pay rise does at $130,000

At $130,000 your compulsory repayment is $9,076, charged only on repayment income above $69,528. In your band, each extra dollar of repayment income adds 17%.

A $5,000 rise takes repayment income to $135,000 and the repayment to $9,926 — $850 more, or 17% of the rise. Income tax on the same dollars is charged separately, so a raise is worth less in hand than the gross figure suggests.

Withholding during the year vs your assessment

Telling your employer you have a study loan — on a Tax file number declaration when you start, or a Withholding declaration later — makes them withhold an extra amount from each pay under PAYG withholding. That money is remitted to the ATO as part of their ordinary PAYG withholding. It is not paid onto your loan as it is withheld, and your loan balance does not fall each pay cycle.

The compulsory repayment itself is only worked out when you lodge your return. The ATO calculates it from your repayment income, shows it on your notice of assessment, and only then applies it to the loan as a single amount. The extra your employer withheld counts as tax withheld against that assessment: if it covered your income tax plus the compulsory repayment, the excess comes back as a refund; if it fell short, the difference is payable.

Unexpected bills almost always come from repayment income the employer never saw. Withholding is set from the salary that one employer pays, so it does not know about a second job, investment income, or the reportable super contributions created by a salary sacrifice arrangement.

On this page's figures: if $15,000 of your $130,000 repayment income came from a source your employer could not see, its withholding was set as though you were on $115,000, where the repayment is $6,821. Your assessment charges $9,076 instead, leaving $2,256 to find at lodgment.

The practical fix is to work out repayment income for the full year rather than reading it off one payslip, and to hold the difference aside. If part of your income is business or investment income, the ATO already takes your loan into account when working out your PAYG instalment amount or rate, and you can vary that instalment if your circumstances change.

Indexation and voluntary repayments

Study and training loans do not attract interest. Instead, on 1 June each year the ATO indexes the part of your accumulated loan that has been unpaid for more than 11 months — anything borrowed inside the last 11 months is not indexed that year. Since the 2024 change, the indexation figure is the lower of the Consumer Price Index and the Wage Price Index, worked out once the December CPI and WPI are released, using Australian Bureau of Statistics figures from the previous two years.

The order the two events happen in is what people miss. Indexation is applied on 1 June, while your compulsory repayment is only credited to the loan after you lodge that year's return — months later. The $9,076 assessed on $130,000 therefore does not reduce the balance being indexed on the 1 June that falls inside the year you earn it.

Voluntary repayments are optional, can be made at any time, and reduce the balance as soon as they are credited. They do not reduce the compulsory repayment: if you still have a loan and your repayment income is above $69,528, the compulsory amount is still assessed on top. What a voluntary repayment changes is the balance that gets indexed — one credited before 1 June reduces the amount indexed that year.

Timing is the whole game there. The ATO notes that electronic payments can take up to four business days to be received and allocated, so a payment made in the last days of May can miss that year's indexation. If you intend to clear the loan entirely, pay before you lodge your return — lodge first and a compulsory repayment can still be included on your assessment. Voluntary repayments are not refundable, and are not tax deductible.

Frequently asked questions