HECS Repayment Thresholds 2026-27
Complete guide to the marginal repayment brackets, updated with the indexed 2026-27 thresholds effective from 1 July 2026.
Updated: July 2026 · Based on ATO legislation
What changed?
Before 2025-26, HECS repayments used a flat-rate system — once your income crossed a threshold, a single percentage applied to your entire repayment income. This created "cliffs" where a $1 pay rise could increase your repayment by hundreds of dollars.
The new marginal system works like income tax brackets. You only pay the higher rate on income within each bracket. The minimum threshold also jumped from $54,435 to $67,000 in 2025-26, and is indexed each year — for 2026-27 it is $69,528.
To see how these HECS repayments sit alongside your income tax, Medicare Levy, and take-home pay, try the Australian Income Tax Calculator.
2026-27 Rate Table
| Repayment Income | Rate |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c per $1 over $69,528 |
| $129,718 – $186,050 | 17c per $1 over $129,717 |
| $186,051+ | 10% of total income |
Examples at common income levels
$60,000
Annual repayment: $0
$80,000
Annual repayment: $1,571(2.0% effective)
$100,000
Annual repayment: $4,571(4.6% effective)
$120,000
Annual repayment: $7,571(6.3% effective)
$150,000
Annual repayment: $12,476(8.3% effective)
$200,000
Annual repayment: $20,000(10.0% effective)
Note that salary sacrifice into super does not reduce your HECS repayment income — the ATO adds reportable super contributions back in. Use the Salary Sacrifice Calculator to see the full impact on your tax and HECS.