How compulsory repayments are worked out
Repayments are based on repayment income, which is more than your taxable income. It adds reportable fringe benefits, reportable super contributions (such as salary sacrifice), total net investment losses and exempt foreign employment income.
For 2026–27 the repayment is:
| Repayment income | Repayment |
|---|---|
| $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 total repayment income |
The repayment is worked out when you lodge your tax return. During the year your employer withholds an amount from each pay towards it, as long as you told them about the debt on your TFN declaration.
Worked examples from the ATO
The calculator reproduces the three 2026–27 examples the ATO publishes. Christina’s repayment income is $86,380, so she repays 15% of $16,852 = $2,527.80. Barry’s is $137,064, so he repays $9,028 + 17% of $7,347 = $10,276.99. Priya’s is $254,780, above the top threshold, so she repays 10% of the total = $25,478.
Repayment income $86,380 (ATO example), balance $25,000
- About per fortnight
- $97
- Rate on the next dollar
- 15.0%
- Years to repay
- 10
Repayment timeline
| Year | Repayment income | Repaid | Balance after indexation |
|---|---|---|---|
| Year 1 | $86,380 | $2,528 | $23,146 |
| Year 2 | $88,971 | $2,604 | $21,159 |
| Year 3 | $91,641 | $2,682 | $19,032 |
| Year 4 | $94,390 | $2,762 | $16,757 |
| Year 5 | $97,221 | $2,845 | $14,330 |
| Year 6 | $100,138 | $2,930 | $11,741 |
| Year 7 | $103,142 | $3,018 | $8,985 |
| Year 8 | $106,237 | $3,109 | $6,052 |
| Year 9 | $109,424 | $3,202 | $2,935 |
| Year 10 | $112,706 | $2,935 | $0 |
What changed
The marginal system began in 2025–26, when the threshold also jumped to $67,000. For 2026–27 the threshold was indexed to $69,528. Combined with the one-off 20% debt reduction applied on 1 June 2025, most borrowers now repay less each year than under the old rules, especially those just above the threshold.
Tips
- Update your TFN declaration if you take on or pay off a HELP debt, so withholding matches what you owe.
- Voluntary repayments reduce the balance but do not reduce your compulsory repayment for the year. They make most sense before 1 June, when indexation is applied.
- Salary sacrifice does not reduce HELP repayments. Reportable super contributions are added back to repayment income.
- If you move overseas, you still need to report your worldwide income to the ATO and make repayments.