For the 2026–27 income year, HELP and other study and training loans use a marginal repayment system. You only repay on income above the minimum threshold. The ATO has published the 2026–27 thresholds and rates.
Repayment Income and 2026–27 Thresholds
Your repayment income is the sum of:
- taxable income (excluding any assessable First Home Super Saver released amounts)
- reportable fringe benefits
- total net investment loss (including net rental losses)
- reportable super contributions
- exempt foreign employment income
Source: Study and training loan repayment thresholds and rates.
2026–27 compulsory repayment thresholds and rates:
| Repayment income | Repayment on this income |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
These figures are also confirmed on StudyAssist and in the official notification of the minimum repayment income for 2026–27 ($69,528).
Worked Numerical Example
Consider a graduate with $80,000 taxable income in 2026–27.
Assumptions: full-year Australian resident employee; taxable income equals repayment income; no other income, deductions or offsets; no Low Income Tax Offset (it cuts out well below this income); asset held for the full year where relevant.
Step 1 – Income tax (2026–27 resident rates):
- Nil on the first $18,200
- 15% × ($45,000 − $18,200) = 15% × $26,800 = $4,020
- 30% × ($80,000 − $45,000) = 30% × $35,000 = $10,500
- Income tax = $14,520
Source: Tax rates – Australian resident (2026–27 table: 15c between $18,201 and $45,000; $4,020 plus 30c above $45,000).
Step 2 – Medicare levy:
- 2% × $80,000 = $1,600 (full levy; income is above the low-income reduction thresholds)
Step 3 – HELP compulsory repayment (marginal):
- Amount above threshold: $80,000 − $69,528 = $10,472
- Repayment: $10,472 × 15% = $1,570.80
Result:
| Component | Amount |
|---|---|
| Income tax | $14,520.00 |
| Medicare levy | $1,600.00 |
| HELP repayment | $1,570.80 |
| Total | $17,690.80 |
| Approx. take-home | $62,309.20 |
Without HELP, take-home would be about $63,880. The HELP repayment reduces take-home by $1,570.80 in this example.
Indexation
On 1 June each year, the ATO indexes the part of your accumulated study loan unpaid for more than 11 months. Indexation uses the lower of CPI and WPI. The rate applied on 1 June 2026 was 2.8%.
Source: Study and training loan indexation rates.
Voluntary repayments before 1 June can reduce the balance that is indexed. Voluntary repayments do not reduce or offset your compulsory repayment for the year.
Limitations
- Employer PAYG withholding towards HELP can differ from the final compulsory amount calculated when you lodge.
- Family or low-income repayment variations may apply.
- Reportable fringe benefits and reportable super contributions can push repayment income above taxable income.
- These figures are for the 2026–27 income year. Distinguishes enacted rates from any later Budget proposals.
Records and Checklist
- Review payslips for HELP withholding.
- Check your myGov ATO loan balance and indexation.
- Confirm every component of repayment income (not just taxable income).
- Tell each employer you have a study loan so they withhold correctly.
For a personalised estimate of income tax and take-home pay, try the Australia 2025–26 individual tax calculator. Cross-check HELP amounts against the ATO thresholds above (a dedicated 2026–27 calculator page is not live yet).