2025–26 Repayment Tiers (new marginal system)
From 1 July 2025, HELP (formerly HECS) repayments are calculated on the income above the minimum threshold, similar to income tax. The old system that applied a single rate to your entire repayment income no longer exists.
| Repayment Income | Rate | Annual Repayment |
|---|---|---|
| $0 – $67,000 | Nil | $0 |
| $67,001 – $125,000 | 15c per $1 above $67,000 | Up to $8,700 |
| $125,001 – $179,285 | $8,700 + 17c per $1 above $125,000 | $8,700 – $17,928 |
| $179,286 and over | 10% of total repayment income | $17,929+ |
How Repayment Income Is Calculated
Your repayment income isn't just your salary. It includes taxable income, reportable fringe benefits, total net investment losses, and reportable super contributions. If you salary sacrifice heavily, it can still push you above a threshold.
Indexation
HELP debts are indexed annually on 1 June, capped at the lower of CPI or the Wage Price Index (the formula changed from 1 June 2023 so debts can't grow faster than wages). The 2025 indexation rate was 3.2% — a $30,000 debt grew by $960 before any repayments were applied.
The 1 June 2026 indexation rate has been confirmed by the ATO at 2.8% — the lowest since 2021, held down by the lower-of-CPI-or-WPI cap. A $30,000 debt grew by about $840 before any repayments were applied. Indexation applies to the balance left after any compulsory or voluntary repayments have been credited — so a voluntary payment made before 1 June reduces the amount that gets indexed.
Frequently Asked Questions
When do HELP repayments start?
When your repayment income exceeds $67,000 (2025–26). Your employer withholds extra tax automatically if you've told them you have a HELP debt.
Can I make voluntary repayments?
Yes. You can pay any amount directly to the ATO at any time. Voluntary repayments reduce your balance but there's no longer a bonus discount for voluntary payments (that ended in 2017).
Does my HELP debt affect my credit score?
No. HELP debts don't appear on your credit report and don't affect your credit score. However, lenders will factor in your HELP repayments when assessing borrowing capacity.
What happens if I move overseas?
You still need to repay. If you earn above the threshold overseas, you must lodge a return and make repayments. The ATO can share data with overseas tax agencies.