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 based on CPI (capped at the lower of CPI or the Wage Price Index). In 2025, indexation was 3.2%. A $30,000 debt added $960 before you made any repayments.
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.