If you have a HECS-HELP or other HELP loan (FEE-HELP, VET Student Loan, etc.), you make compulsory repayments once your income exceeds the annual threshold — currently $54,435 for 2025-26. Repayments are calculated as a percentage of your entire repayment income, not just the amount above the threshold, using a marginal-style rate table.
Repayment income is broadly your taxable income, plus any reportable fringe benefits, total net investment losses (including rental property losses), reportable super contributions, and exempt foreign employment income. This is generally higher than your simple taxable income, which is why salary sacrificing into super doesn't reduce your HECS repayment income the way it reduces your taxable income for regular tax purposes.
| Repayment income | Repayment rate |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $79,347 – $84,196 | 4.0% |
| $94,690 – $100,414 | 5.0% |
| $112,986 – $119,999 | 6.5% |
| $154,624 – $163,975 | 9.0% |
| Above $163,975 | 10.0% |
Unlike income tax brackets, the repayment rate applies to your entire repayment income once you cross a threshold — not just the amount above it. This means crossing a threshold by even a small amount can noticeably increase your total repayment.
$70,000 falls in the $66,621–$70,618 band... actually just above it into the 3.0% band ($70,619–$74,855) if income were $70,619, but at exactly $70,000 the rate is 2.5%. Repayment: $70,000 × 2.5% = $1,750, deducted progressively through the year via extra PAYG withholding.
If you're employed, your employer automatically withholds additional tax throughout the year once you've declared your HECS/HELP debt on your Tax File Number declaration, based on your estimated annual income. When you lodge your tax return, the ATO calculates your exact compulsory repayment based on your actual repayment income for the year and reconciles any difference — you may get a small refund or owe a small top-up depending on how accurately your employer's withholding matched your true income.