HECS/HELP repayments

If you have a HELP debt (HECS‑HELP, VSL, etc.), compulsory repayments are based on your repayment income.

1) What is repayment income?

Repayment income starts with taxable income, then adds specific adjustments used by the ATO.

Repayment income includes:

taxable income
reportable fringe benefits
total net investment loss (including net rental losses)
reportable super contributions
exempt foreign employment income

In OzMoneyTools, you can optionally enter some of these under Income components (advanced)so HELP estimates are closer for people with salary sacrifice, fringe benefits, or investment losses.

2) 2025–26 thresholds and rates (ATO)

From 2025–26 the ATO applies marginal repayment rates above the minimum threshold. Below $67,000 repayment income, the compulsory repayment is $0.

Repayment income	Repayment on this income
$0 – $67,000	Nil
$67,001 – $125,000	15c for each $1 over $67,000
$125,001 – $179,285	$8,700 plus 17c for each $1 over $125,000
$179,286 and over	10% of your total repayment income

Source: ATO study and training support loan repayment thresholds and rates (2025–26).

3) How repayments show up on your payslip

HELP repayments are handled through the tax system. If you tell your employer you have a study or training loan, they typically withhold extra PAYG amounts during the year.

The amount withheld isn’t applied to your HELP balance each pay run — it’s generally applied after you lodge your tax return and the ATO calculates your compulsory repayment.

FAQ

Do I have to enter my loan balance?

No. Compulsory repayments are based on your repayment income (once you’re above the minimum threshold), not your remaining balance.

Why does my HELP figure differ between calculators?

Differences often come from what each calculator includes in “repayment income” (for example, fringe benefits, salary sacrifice, investment losses, or exempt foreign income).

Can low family income affect HELP repayments?

The ATO notes that in some cases, if you have a spouse or dependants and due to low family income you don’t pay the Medicare levy (or get a Medicare levy reduction), you may not have to make a compulsory repayment.

Sources

ATO: Study and training loan repayment thresholds and rates: ato.gov.au
ATO: Compulsory repayments: ato.gov.au

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