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 income | Rate |
|---|---|
| $0 – $54,435 | 0% |
| $54,436 – $62,850 | 1% |
| $62,851 – $66,620 | 2% |
| … | … |
| $150,627 – $159,663 | 9.5% |
| $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
- 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.
- Pre-pay voluntary amounts: If you know you’ll owe a repayment, you can pay before tax time to avoid a surprise.
- 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.