2026-27 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 |
ATO, Study and training loan repayment thresholds and rates.
The Threshold Applies to Repayment Income, Not Salary
Repayment income is wider than your pay. The ATO adds together:
- taxable income
- reportable fringe benefits
- total net investment loss
- reportable super contributions
- exempt foreign employment income
That is why salary sacrificing into super does not drop you under the threshold — the contributions are added back.
Repayment at Common Incomes
| Repayment income | Compulsory repayment |
|---|---|
| $75,000 | $821 |
| $85,000 | $2,321 |
| $100,000 | $4,571 |
| $130,000 | $9,076 |
| $190,000 | $19,000 |
Work out your own figure with the HECS repayment calculator.
The threshold is indexed annually — it was $67,000 in 2025-26 — and the rates have applied marginally since 1 July 2025.
One Threshold Covers Every Study Loan
HELP (including HECS-HELP and FEE-HELP), VSL, SFSS, SSL, ABSTUDY SSL and AASL all share this threshold. The HECS repayment calculator lists every scheme and the order they are repaid. See also STSL on your payslip and the HECS-HELP guide.
Frequently Asked Questions
HECS repayment threshold questions and answers
What is the HECS repayment threshold for 2026-27?
$69,528. Repayment income at or below $69,528 attracts no compulsory repayment. Above it you repay 15c for each $1 over $69,528, rising to $9,028 plus 17c per $1 over $129,717, then 10% of total repayment income from $186,051.
Is the threshold based on my salary?
No — on repayment income, which is wider. It adds reportable fringe benefits, net investment loss, reportable super contributions and exempt foreign employment income to your taxable income, so salary sacrificing does not push you under it.
Which loans use this threshold?
All of them. One set of thresholds and rates covers HELP (including HECS-HELP and FEE-HELP), VET Student Loans, SFSS, Student Start-up Loans, ABSTUDY SSL and the Australian Apprenticeship Support Loan.
How much do I repay just over the threshold?
Very little. At $75,000 the repayment is $821 for the year. The marginal system charges 15c only on income above $69,528, so crossing the line no longer triggers a repayment on your whole income.
How we verified these figures▼
Thresholds, rates and the definition of repayment income come from the ATO’s Study and training loan repayment thresholds and rates (QC16176). Every figure on this page is read from one constants file that also drives our calculator, and it reconciles to the ATO’s own worked example: repayment income of $137,064 gives $9,028 + $1,248.99 = $10,276.99.
Sources & References
- 1Study and training loan repayment thresholds and rates (QC16176)— Australian Taxation Office
- 2Study and training loan indexation rates (QC18714)— Australian Taxation Office
Last verified: 28 July 2026. Our content is based on the latest information from official Australian government sources.
James Harrington
Verified AuthorSenior Tax & Payroll Analyst
CPA, Registered Tax Agent (25787011)
James is a CPA-qualified tax professional with over 14 years of experience in Australian taxation and payroll systems. He spent six years at the Australian Taxation Office working on PAYG withholding and individual tax return processing before moving into financial publishing. He now leads the tax content at Pay Calculator Australia, translating complex ATO legislation into clear, actionable guidance.
Areas of Expertise