2025-26 HELP Repayment Rates Explained

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Primary tax-year context: 2025-26

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General information only. Speak with a registered tax agent for advice.

HELP (formerly HECS) is repaid through the tax system. Once your “repayment income” crosses a threshold, the new rate applies to your entire income—not just the slice above the line. That’s why moving from $54,400 to $54,500 can suddenly take $545 from your take-home pay.

2025-26 thresholds

Repayment incomeRate
$0 – $54,4350%
$54,436 – $62,8501%
$62,851 – $66,6202%
$150,627 – $159,6639.5%
$159,664+10%

These rates are indexed to wage growth each year. Plan ahead if your income is close to a threshold—you may want to sacrifice into super or defer a bonus to avoid a short-term cash crunch.

Managing the cliff

  1. Salary sacrifice: Contributing a little more to super reduces your repayment income immediately. Use the toggle on our Income Tax Calculator to see the trade-off.
  2. Pre-pay voluntary amounts: If you know you’ll owe a repayment, you can pay before tax time to avoid a surprise.
  3. Track multiple jobs: The ATO looks at your combined income. If you take a second job with no withholding, you could owe more at lodgement.

Key takeaways

  • HELP rates are flat percentages on your entire income, not marginal brackets.
  • Thresholds are indexed, but the jump between tiers can still exceed your pay rise.
  • Salary sacrificing or spreading income helps smooth the cliff.
  • Keep an eye on your myGov account to see your remaining balance before making extra repayments.

Related tools: Income Tax Calculator and the HELP repayment scenario.

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