The 2026–27 repayment bands
| Repayment income | Repayment rate |
|---|---|
| Up to $69,528 | Nil |
| $69,529 – $129,717 | 15c per $1 over $69,528 |
| $129,718 – $186,050 | $9,028 + 17c per $1 over $129,717 |
| $186,051+ | 10% of total repayment income |
"Repayment income" is broader than your salary. It adds back reportable fringe benefits, reportable super contributions and net investment losses to your taxable income, so those can push you into a higher repayment band even if your take-home pay looks lower.
Why this used to be a trap
Before the system changed, crossing a threshold meant your entire income was repaid at the higher rate, not just the part above it. Earning $67,001 instead of $66,999 could genuinely cost you thousands more a year, which discouraged people from taking a pay rise or extra shift near a threshold.
The marginal system fixed that. Now only the income inside each band is charged at that band's rate, the same logic as income tax brackets, so a small raise only ever costs you a small amount more in repayments.
Worked example
Say your repayment income for 2026–27 is $85,000.
- Nothing is owed on the first $69,528.
- 15% applies to the remaining $15,472 ($85,000 − $69,528).
- Annual repayment: 15% × $15,472 = $2,321, roughly $193 a month, usually withheld gradually through your pay rather than billed as a lump sum.
Questions people actually ask
What is the HECS/HELP threshold for 2026–27?+
$69,528. Repayments then apply marginally through the bands shown above, up to 10% of total repayment income for the highest earners.
Is it still a cliff where $1 more costs thousands?+
No. The marginal system only taxes the income above each threshold at that band's rate, so small pay rises only cost a small amount more.
Does salary sacrificing reduce my repayment income?+
No, repayment income adds reportable super contributions back in, so sacrificing into super doesn't lower your HECS repayment.
General information only, based on ATO guidance current as of September 2026, not personal tax advice. Thresholds are indexed annually; confirm current-year figures at ato.gov.au before relying on them.