Tax
HELP and STSL Repayments Explained
Short answer
HELP and STSL repayments become compulsory once your repayment income passes the threshold, and since 2025-26 they are marginal. For 2026-27 you pay nothing up to $69,528, then 15c in each dollar to $129,717, then $9,028 plus 17c to $186,050, and 10% of total repayment income above that.
The new marginal system
Before 2025-26 a flat rate applied to your whole income. Under the marginal system you only pay on income above $69,528 for 2026-27 (except the top band). This means lower earners repay less - someone on $60,000 now repays nothing. The threshold is indexed each year: it was $67,000 in 2025-26.
What counts as repayment income
Repayment income is taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income. The same thresholds cover HELP, VSL, SFSS, SSL, ABSTUDY SSL and AASL.
Frequently asked questions
Do I repay under $69,528?+
No. For 2026-27 there is no compulsory repayment below $69,528.
Is there interest on HELP?+
No interest, but the balance is indexed each year.
Does it come out of each pay?+
Employers withhold extra to cover the expected repayment, which is reconciled at tax time.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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