A HECS-HELP debt (or other study or training loan under the HELP umbrella) doesn't need to be repaid on a fixed schedule. Instead, the ATO calculates a compulsory repayment each year based on your income, once you earn enough to be required to pay.
The Repayment Threshold
In 2026–27, compulsory repayments only kick in once your repayment income exceeds $69,528. Repayment income is broader than taxable income — it includes things like reportable fringe benefits and reportable super contributions, so it can be higher than the salary figure on your payslip.
A Marginal, Not Flat, System
Repayments use a marginal system similar to income tax: you pay 15 cents for every dollar above $69,528, rising to 17 cents per dollar once you pass $129,717. On $85,000 repayment income, that works out to $2,321 for the year. The total repayment is capped at 10% of your total repayment income, whichever calculation gives the lower amount.
How It's Actually Collected
If you've told your employer about your HELP debt, they withhold an extra amount from each pay on top of normal income tax, sized to cover your expected annual repayment. At tax time, the ATO works out your exact compulsory repayment based on your actual income and reconciles it against what was withheld — you may get some back, or owe a top-up, depending on how accurate the withholding was.
Indexation, Not Interest
Your remaining HELP balance is indexed once a year, typically in line with CPI (inflation), rather than charged a traditional interest rate. That means a debt that isn't being repaid can still grow in dollar terms over time, even without interest in the conventional sense.
Work out your exact repayment on its own with our HECS-HELP Repayment Calculator, or see it alongside income tax and take-home pay with our Take Home Pay Calculator Australia — just tick the HECS-HELP box.
Sources: ATO — study and training loan repayment thresholds and rates; Study Assist — loan increases and indexation.