If you studied at an Australian university with a government loan, you likely have a HECS-HELP debt. This guide explains exactly how HECS repayments work in 2026–27, what the thresholds are, and how to calculate your repayment amount. Use the WageCalc pay calculator to see your HECS repayment included in your take-home pay.
What is HECS-HELP?
HECS-HELP (Higher Education Contribution Scheme – Higher Education Loan Program) is an Australian Government loan that helps eligible students pay their university tuition fees. The debt is indexed annually to CPI and repaid compulsorily through the tax system once your income reaches the minimum repayment threshold.
2026–27 HECS-HELP Repayment Thresholds (Marginal System)
Repayments are based on your repayment income — your taxable income plus reportable fringe benefits and reportable super contributions.
Big change: since 1 July 2025, HECS repayments use a marginal system, just like income tax brackets. You no longer pay a flat percentage of your whole income — you only pay on the portion of income above each threshold. For 2026–27 the minimum repayment threshold is $69,528 (indexed up from $67,000 in 2026–27). This means most people with a HECS debt now repay significantly less per year than under the old system.
| Repayment Income | Repayment Rate | Example Annual Repayment |
|---|---|---|
| Below $69,528 | Nil | $0 |
| $69,529 – $129,717 | 15c for each $1 over $69,528 | e.g. $80,000 income → $1,571/yr |
| $129,718 – $186,050 | $9,028 plus 17c for each $1 over $129,717 | e.g. $150,000 income → $12,476/yr |
| $186,051+ | 10% of total repayment income | e.g. $200,000 income → $20,000/yr |
How to Calculate Your HECS Repayment
Your HECS repayment is now calculated marginally: 15c for each $1 of repayment income above $69,528 (up to $129,717), then 17c per $1 up to $186,050, and 10% of total repayment income above that. For example, if your repayment income is $75,000, you repay 15% of the $5,472 above the threshold — just $821 per year (about $32 per fortnight). Under the old flat-rate system the same income paid $1,875, so the marginal system saves you over $1,000 a year.
The easiest way to calculate your exact repayment is to use the WageCalc Australian pay calculator — just toggle on the Student Loan / HELP debt option and your repayment is automatically included in your take-home pay calculation.
Key Facts About HECS-HELP in 2026–27
- Repayments are automatically deducted through your employer’s tax withholding
- Your debt is indexed every 1 June to the lower of CPI and wage growth (WPI)
- Voluntary repayments can be made at any time directly to the ATO
- Your HECS debt does not affect your credit rating
- You can check your HECS balance via myGov → ATO → Loans and debts
- Overseas residents must also make repayments (Overseas Levy)
Related Calculators
Also see: Superannuation Calculator | Medicare Levy Calculator | Full Pay Calculator
HECS repayment: frequently asked questions
What is the HECS repayment threshold for 2026–27? $69,528. Below that you have no compulsory repayment; above it you repay 15c on each dollar over the threshold.
What are the HECS repayment rates? Under the marginal system: 15c per dollar from $69,529 to $129,717, then $9,028 plus 17c per dollar to $186,050, and 10% of total income above that.
How much HECS should I be paying? On $75,000 it’s about $821 a year; on $100,000 about $4,571; on $130,000 about $9,076. You only pay on the income above $69,528, not your whole salary.