Debt & Repayments
HELP/HECS Repayment Thresholds
The income thresholds and rates the ATO uses to calculate your compulsory HECS/HELP repayment each year.
What it is
HECS-HELP and other HELP loans are repaid compulsorily through the tax system once your repayment income exceeds the minimum threshold. The ATO uses a marginal band system (you pay a rate only on the income within each band, similar to income tax), then adds indexation to the remaining balance each year.
Who it applies to
Anyone with an outstanding HECS-HELP, FEE-HELP, or other study/training loan whose repayment income exceeds the minimum threshold for the financial year.
Key figures
- Minimum repayment threshold
- $69,528
- 15% band
- $69,528 – $129,717
- 17% band
- $129,717 – $186,050
- 10% band (of total income)
- $186,051+
- Indexation (long-run planning estimate)
- 2.5% p.a.
Important limitations
Indexation is applied on 1 June each year at the lower of CPI or the Wage Price Index and varies year to year (the ATO publishes the current and past rates), the 2.5% figure used in projections is a long-run planning estimate, not a guarantee. New study debts from future enrolments are not modelled.
Official sources
- Australian Taxation Office (ATO) - Study and training support loans, repayment thresholds and rates
Educational information only, not financial advice.