The marginal repayment system
Before 2025-26, your whole income was multiplied by a repayment percentage once you crossed a threshold, which created big jumps. The new system only takes a share of the income above the threshold, so a pay rise never costs you more in repayments than it adds.
Repayment income includes taxable income plus reportable super contributions, fringe benefits and net investment losses.
Compulsory repayments by income
| Repayment income | Repayment / year | Per fortnight | Take-home pay |
|---|---|---|---|
| $60,000 | $0 | $0 | $50,380 |
| $67,000 | $0 | $0 | $55,040 |
| $75,000 | $821 | $32 | $59,659 |
| $90,000 | $3,071 | $118 | $67,609 |
| $100,000 | $4,571 | $176 | $72,909 |
| $125,000 | $8,321 | $320 | $86,159 |
| $150,000 | $12,476 | $480 | $97,954 |
| $200,000 | $20,000 | $769 | $120,130 |
Indexation and the 20% cut
HELP balances are indexed each year on 1 June. In 2025, legislation cut outstanding HELP balances by 20% and capped indexation at the lower of inflation and wage growth.
Practical tips
- Tick the HELP box on your tax file number declaration so your employer withholds enough.
- Voluntary repayments reduce your balance but do not give a discount.
- Paying down HELP early rarely beats paying off higher-interest debt first.
HELP and salary sacrifice
Salary-sacrificed super counts as reportable super contributions, which are added back to your repayment income. On $90,000, sacrificing 5% into super lowers your income tax but your HELP repayment stays at $3,071, the same as without sacrifice ($3,071).
Withholding through your pay
Your employer withholds extra tax each pay to cover the expected repayment: about $118 per fortnight on $90,000. The exact repayment is calculated when you lodge your return.
Frequently asked questions
What is the HELP repayment threshold for 2026-27?
$69,528 of repayment income.
How much HELP do I repay on $100,000?
$4,571 a year.
Does HELP debt charge interest?
No interest, but the balance is indexed once a year.
Does salary sacrifice reduce my HELP repayment?
No. Reportable super contributions are added back to your repayment income.
Figures use ATO 2026-27 resident tax rates, the low income tax offset, the Medicare levy and HELP repayment rates. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.