How compulsory repayments work
Once your repayment income is above the minimum threshold, you make compulsory repayments through the tax system. Your employer withholds them from your pay, and the ATO settles the final amount when you lodge your tax return.
Since 1 July 2025, repayments use a marginal system, like income tax brackets. You only repay on the part of your income above the threshold, not on your whole income.
2026–27 repayment rates
Repayment income | Compulsory repayment |
Up to $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 your total repayment income |
2025–26 repayment rates
Repayment income | Compulsory repayment |
Up to $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 |
The top band switches to 10% of your whole income, but the bands are set so there's no jump in repayments as you cross into it.
2024–25 repayment rates (old system)
Before 1 July 2025, the rate applied to your whole repayment income, not just the part above the threshold.
Income (from) | Repayment Rate |
$0 | 0% |
$54,435 | 1% |
$62,851 | 2% |
$66,621 | 2.5% |
$70,619 | 3% |
$74,856 | 3.5% |
$79,347 | 4% |
$84,108 | 4.5% |
$89,155 | 5% |
$94,504 | 5.5% |
$100,175 | 6% |
$106,186 | 6.5% |
$112,557 | 7% |
$119,310 | 7.5% |
$126,468 | 8% |
$134,057 | 8.5% |
$142,101 | 9% |
$150,627 | 9.5% |
$159,664+ | 10%
|
Examples (2026–27):
Repayment income | Yearly repayment | Share of income |
$80,000 | $1,571 | 2.0% |
$140,000 | $10,776 | 7.7% |
$200,000 | $20,000 | 10% |
You never repay more than you owe. In the year your debt is paid off, the repayment is capped at your remaining balance.
How thresholds change over your plan
The repayment thresholds go up every year in line with average weekly earnings. For example, the minimum threshold rose from $67,000 in 2025–26 to $69,528 in 2026–27. Canwi projects this using your scenario's Wage Growth rate, so the thresholds keep rising over your plan. You can change Wage Growth in Scenario Settings.
This matters if your income grows slowly. If your pay rises more slowly than the thresholds, your repayments shrink over time and your debt takes longer to clear.
How HELP debt indexation works
On 1 June each year, the government adds indexation to your HELP debt so it keeps its real value. It isn't interest.
The indexation rate is the lower of inflation (CPI) or wage growth (WPI). It was 2.8% on 1 June 2026.
By default, Canwi indexes your HELP debt each year at your scenario's Inflation rate. With the default assumptions, inflation (2.6%) is lower than wage growth (3.5%), so this matches the lower-of rule. You can change the Inflation rate in Scenario Settings.
Where can I see that Help Debt Repayments?
The Yearly Financial Breakdown provides
Does salary sacrificing into super reduce my HELP repayments?
No. Salary sacrifice is a reportable super contribution, so it's added back to your repayment income. It reduces your income tax but not your HELP repayment.
What rate does Canwi use for indexation? Your scenario's Inflation rate, by default. The law uses the lower of CPI and wage growth, and inflation is the lower of the two under Canwi's default assumptions. If you set wage growth below inflation in your scenario, the real-world rule would index at wage growth instead, so your projected debt may be slightly higher than it would actually be.
Why is my debt growing even though I'm making repayments? If your repayments are smaller than the yearly indexation, the balance can still go up. This is more likely if your income is just above the threshold.
Does negative gearing reduce my HELP repayments? No. Net rental and investment losses are added back to your repayment income.
My partner and I both have HELP debts. Is that handled? Yes. Each person's debt is repaid from their own repayment income.