--- title: "How long does it takes to repay HECS debt in 2026? | Chec..." description: "The minimum income for compulsory HECS-HELP repayments is $69,528 in 2026–27. ATO-linked HELP statistics show the average borrower took 9.9 years to repay a HEL" lang: en-AU json-ld: | { "@context": "https://schema.org", "@type": "Article", "headline": "How long does it takes to repay HECS debt  in 2026?", "description": "The minimum income for compulsory HECS-HELP repayments is $69,528 in 2026–27. ATO-linked HELP statistics show the average borrower took 9.9 years to repay a HELP debt in full.", "image": [ "https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/03e517d2-481e-4723-8c56-1d8b1b238848/1783047602540.jpg" ], "datePublished": "2026-07-03T00:00:00+00:00", "dateModified": "2026-07-03T05:23:15.476922+00:00", "author": { "@type": "Organization", "name": "CheckRate" }, "publisher": { "@type": "Organization", "name": "CheckRate" }, "mainEntityOfPage": { "@type": "WebPage", "@id": "https://checkrate.com.au/hecs-repayment-thresholds" } } --- [CheckRate ](/) [Library](/articles) Back Spending # How long does it takes to repay HECS debt  in 2026? The minimum income for compulsory HECS-HELP repayments is $69,528 in 2026–27. ATO-linked HELP statistics show the average borrower took 9.9 years to repay a HELP debt in full. 12 min read 03 July 2026 Updated 03 July 2026 Fact checked In this article 1. [HECS-HELP repayments start when income exceeds $69,528](#hecs-help-repayments-start-when-income-exceeds-69528) 2. [How the 2026 marginal repayment system works](#how-the-2026-marginal-repayment-system-works) 3. [Compulsory repayments are lower for many incomes under the new system](#compulsory-repayments-are-lower-for-many-incomes-under-the-new-system) 4. [The average repayment time is now nearly 10 years](#the-average-repayment-time-is-now-nearly-10-years) 5. [HECS-HELP debt can vary widely by field of study](#hecs-help-debt-can-vary-widely-by-field-of-study) 6. [The 2025 threshold jump was bigger than normal indexation](#the-2025-threshold-jump-was-bigger-than-normal-indexation) Key statistics $69,528 Minimum repayment threshold, **2026–27**, up from $67,000 in 2025–26. 9.9 yrs Average time to repay a HELP debt in full, **2023**, up from 7.3 years in 2006. 20% One-off cut to HELP balances in 2025, wiping **$5,520** off an average $27,600 debt. 51.5% Rise in the minimum threshold since 2019–20, including a legislated jump above ordinary indexation. The minimum income needed to start repaying a HECS-HELP debt is $69,528 in the 2026–27 financial year, up from $54,435 just two years earlier. From 1 July 2025, compulsory repayments are calculated on a marginal basis, so only the income above the threshold is charged, rather than a flat percentage of the whole amount. The government also cut existing HELP balances by 20% in 2025, wiping $5,520 from an average $27,600 debt. Even with those changes, the most recent published repayment-time figure shows it took the average borrower **9.9 years** to repay a HECS-HELP debt in full, nearly three years longer than in 2006. At what income does compulsory HECS-HELP repayment start? ▾ In the 2026–27 financial year, compulsory repayments start once repayment income exceeds **$69,528**. In 2025–26, the threshold was $67,000. How long does it take to repay a HECS-HELP debt? ▾ On average, the most recent published figure is **9.9 years**, covering debts repaid in full to 2023. That figure only counts debts already repaid, so it does not predict how long a current student or borrower will take. How much lower are repayments under the new HECS-HELP system? ▾ It depends on income. At a repayment income of $70,000, the new system saves about $1,300 a year compared with the old rules. At $80,000, the savings are $850 per year. Above $179,286, there is no change: both systems charge 10%. Section 01 Repayment threshold ## HECS-HELP repayments start when income exceeds $69,528 The minimum repayment threshold is $69,528 for 2026–27, up from $67,000 in 2025–26 and $54,435 in 2024–25, a rise of more than $15,000 in two years. Below the threshold, no compulsory repayment is required, no matter how large the underlying debt is. Repayment income is also broader than salary. It includes: - Taxable income excluding any assessable First Home Super Saver released amount - Reportable fringe benefits amounts - Total net investment loss (including net rental losses) - Reportable super contributions - Exempt foreign employment income amounts Someone with a modest salary but a negatively geared rental property, for example, can have a repayment income well above their taxable income alone. Income year Minimum threshold Change on prior year 2019–20 $45,881 — 2020–21 $46,620 +1.6% 2021–22 $47,014 +0.8% 2022–23 $48,361 +2.9% 2023–24 $51,550 +6.6% 2024–25 $54,435 +5.6% 2025–26 ★ $67,000 +23.1% 2026–27 **$69,528** +3.8% ★ Highlighted because this jump came from legislation, not routine indexation. **Source:** Australian Taxation Office, repayment thresholds and rates page, last updated 30 June 2026. Most of that history moved in small steps, in line with wages. Section 06 shows why 2025–26 was the exception. Section 02 Marginal system ## How the 2026 marginal repayment system works From 1 July 2025, compulsory HECS-HELP repayments moved to a marginal system. For most repayment incomes, only the income above the minimum threshold is charged. For the highest band, the repayment is 10% of total repayment income. Under the old rules, crossing a threshold meant a single percentage applied to the entire repayment income. A small pay rise that pushed someone into the next band could noticeably increase their total repayment. Repayment income (2026–27) Repayment on this income $0 – $69,528 Nil $69,529 – $129,717 15c for every $1 over $69,528 $129,718 – $186,050 $9,028 plus 17c for every $1 over $129,717 $186,051 and over 10% of total repayment income **Source:** Australian Taxation Office, Table 1, repayment thresholds and rates page. Repayment income (2025–26) Repayment on this income $0 – $67,000 Nil $67,001 – $125,000 15c for every $1 over $67,000 $125,001 – $179,285 $8,700 plus 17c for every $1 over $125,000 $179,286 and over 10% of total repayment income **Source:** Australian Taxation Office, Table 2, repayment thresholds and rates page. The bands moved up slightly for 2026–27, but the structure stayed the same: nil, then 15c, then 17c, then a flat 10% of total repayment income at the top. The 15c and 17c bands apply only to income inside those bands, while the highest band uses a flat 10% rate on total repayment income. Repayment income Band Calculation Compulsory repayment $86,380 15c band 15% of ($86,380 − $69,528) $2,527.80 $137,064 17c band $9,028 + 17% of ($137,064 − $129,717) $10,276.99 $254,780 Top band 10% of $254,780 $25,478 **Source:** Australian Taxation Office, repayment thresholds and rates page. 2026–27 repayment at a glance $75,000 $821 a year $100,000 $4,571 a year $150,000 $12,476 a year $200,000 $20,000 a year Illustrative figures calculated using the published 2026–27 formula, rounded to the nearest dollar. The repayment grows steadily as income rises through the 15% and 17% bands. Once income passes $186,050, the rate becomes 10% of total repayment income, the same top rate that applied under the old system. This is why the new rules mainly change outcomes for incomes near the threshold and in the middle bands, while making little difference for the highest repayment incomes. How the old HECS-HELP repayment system worked Under the 2024–25 rules, which used a single flat rate, a repayment income of $99,736 sat in the 5.5% band. The whole amount was charged at that one rate, producing a compulsory repayment of $5,485.48. There was no untaxed portion below a lower band. The entire repayment income was rated at whichever band it fell into. Source: Australian Taxation Office, repayment thresholds and rates page. Section 03 Savings ## Compulsory repayments are lower for many incomes under the new system At a 2025–26 repayment income of $70,000, the new system reduced compulsory repayments by about $1,300 a year compared with the old rules. At $80,000, the reduction was $850 a year. Compulsory repayment comparison, 2025–26 rates Repayment income Old system New system Difference $70,000 about $1,750 (2.5%) $450 (15% of $3,000) About $1,300 lower, government-stated comparison $80,000 $2,800 (3.5%) $1,950 (15% of $13,000) $850 lower per year, about $32 per fortnight $179,286 and over 10% 10% No change **Source:** Australian Taxation Office, repayment thresholds and rates page, and Study and training loans, what's new page. The $80,000 figures come from the ATO's own published example. The ATO states that, before the law change, a repayment income of $80,000 would have produced a compulsory repayment of $2,800, compared with $1,950 under the new system. The $70,000 figures come from government statements and align with the 2025–26 marginal threshold calculation. The two rows are useful illustrations, but they are not calculated in the same way. The pattern is consistent. Lower compulsory repayments are concentrated among repayment incomes just above the threshold and through the middle bands. The difference tapers to zero once repayment income reaches $179,286, where both systems reach the same 10% rate. The 20% HELP debt cut was a separate reform Alongside the rate change, the government cut existing HELP balances by 20% in 2025, backdated to 1 June 2025, before that year's indexation was applied. For the benchmark average debt of $27,600, that meant $5,520 was removed from the balance. The reduction affected more than 3 million people and removed more than $16 billion in HELP and other student debt. According to the Department of Education, about 70% of people repaying a HELP debt are 35 or younger. $1,300 Lower compulsory repayment per year at a $70,000 repayment income, new system vs old. $850 Lower compulsory repayment per year at an $80,000 repayment income, new system vs old. $5,520 Cut from the average $27,600 HELP debt under the 2025 reduction. **Source:** Australian Taxation Office and Department of Education, debt reduction and repayment threshold announcements. Section 04 Repayment time ## The average repayment time is now nearly 10 years The average time to repay a HELP debt in full rose from 7.3 years in 2006 to 9.9 years in 2023, an increase of about 36%. Average time to repay a HELP debt in full in Australia Time from first incurring a HELP debt to full repayment, in years The gaps between data points are uneven: 2011–12 and 2021–22 are a decade apart, while 2021–22 and 2023 are only about one year apart. The most recent interval shows a faster increase than the earlier decade-long period, but the series should not be read as a smooth annual trend. **Source:** Parliamentary Library (2023) and The Australia Institute (2024), both citing Australian Taxation Office HELP Statistics. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) What the repayment-time figure does not show This average only counts debts already repaid in full, so it looks backwards, not forwards. Older, smaller debts tend to close out faster, so recent figures mix long-closed smaller debts with newer, larger debts that have only just reached full repayment. The underlying data predates the 2025 reforms, so it doesn't yet reflect the 20% debt cut or the new marginal repayment system. The next update, once it covers 2025–26 and 2026–27, will show whether the reforms change typical repayment times. Part of the reason repayment is taking longer is that debts themselves have grown. The average HELP debt for people in their 20s more than doubled between 2006 and 2024, from $12,600 to $31,500, a far steeper rise than the roughly 62% that inflation alone would explain. Across all debtors, the average loan debt rose from $15,200 to $24,800 over the decade to 2021–22, and reached about $27,600 by 2023–24, close to the benchmark used for the 2025 debt cut. Related reading For the current national average HELP balance, borrower numbers and total outstanding debt, see CheckRate's [**Average HECS-HELP debt in Australia in 2026**](/average-hecs-help-debt). Section 05 Field of study ## HECS-HELP debt can vary widely by field of study The most expensive funding cluster costs $17,399 a year, more than three times the cheapest at $4,738. There's no official table linking repayment time to field of study, but that cost gap is measurable. About the data This comparison is CheckRate's own calculation, combining two separate official data sets: Department of Education 2026 funding-cluster contribution amounts and the QILT Graduate Outcomes Survey median salary. It shows the size of the annual student contribution gap, not a predicted number of years to repay. Law, commerce, economics, communications and society and culture $17,399 per year · 23.2% of median grad salary Medicine, dentistry, veterinary science $13,558 per year · 18.1% of median grad salary Engineering, computing, allied health $9,537 per year · 12.7% of median grad salary Nursing, education, agriculture $4,738 per year · 6.3% of median grad salary Figures are the maximum annual student contribution amounts for one equivalent full-time student load in 2026. **Source:** Department of Education, 2026 indexed rates. Percentages calculated against the 2024 median full-time undergraduate salary of $75,000 (QILT). As a share of the median graduate's full-time starting salary, the law, commerce, economics, communications and society and culture cluster equals about 23%. The nursing, education and agriculture cluster equals about 6% of that same benchmark. This comparison uses one overall salary figure rather than a separate benchmark for each field, so it shows the scale of the contribution gap, not an exact repayment timeline. Actual starting salaries vary by field, and course cost and earning power do not always move together. Social work had a median full-time undergraduate salary of **$82,000** in 2024, above the $75,000 overall undergraduate median. Section 06 Over time ## The 2025 threshold jump was bigger than normal indexation Since 2019–20, the minimum repayment threshold has risen 51.5%, from $45,881 to $69,528. Most annual changes in that period were much smaller. The 2025–26 change was the exception. Under the previous formula, the 2025–26 threshold would have been $56,156, compared with the legislated $67,000 threshold. The threshold's 2025–26 jump went beyond what the earlier formula would have produced. The threshold and indexation work differently. Indexation applies to outstanding loan balances, not to the repayment threshold. Each 1 June, the ATO increases any part of a study or training loan that has been unpaid for more than 11 months. From 2025, the rate is based on the lower of the Consumer Price Index or the Wage Price Index. That rate has ranged from 0.6% in 2021 to 4.0% in 2024, after the 2024 rate was revised down from 4.7%. It was 2.8% in 2026, the lowest rate since 2021. The 2023 rate was also revised down from 7.1% to 3.2% after the government moved to the lower-of-CPI-or-WPI method. The Department of Education said that backdated change cut about $3 billion from outstanding student debt. HECS-HELP repayment threshold and loan indexation rate in Australia Shown as two separate panels: threshold in dollars, indexation rate in per cent Minimum HECS-HELP repayment threshold in Australia, 2019–20 to 2026–27 HECS-HELP loan indexation rate in Australia, 2013 to 2026 Ordinary indexation years Legislated reform years **Source:** Australian Taxation Office, repayment thresholds and rates page, and indexation rates page. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Year Indexation rate 2013 2.0% 2014 2.6% 2015 2.1% 2016 1.5% 2017 1.5% 2018 1.9% 2019 1.8% 2020 1.8% 2021 0.6% 2022 3.9% 2023 3.2% (revised from 7.1%) 2024 4.0% (revised from 4.7%) 2025 3.2% 2026 **2.8%** Indexation applies on 1 June to any part of a loan unpaid for more than 11 months. From 2025, the rate uses the lower of CPI or the Wage Price Index. **Source:** Australian Taxation Office, indexation rates page, last updated 17 April 2026. The threshold and indexation rate are governed separately. The threshold's 2025–26 jump went beyond what the earlier formula would have produced. The indexation change, by contrast, switched the loan-balance formula to the lower of CPI or WPI, applied from 2025 and backdated to 2023 and 2024. Repayment calculator How much is the _compulsory repayment?_ Enter a repayment income to see the compulsory repayment under the current marginal system, and how it compares with the old flat-rate rules (2024–25 table). Income year 2026–27 (threshold $69,528) 2025–26 (threshold $67,000) Repayment income $ Calculate General information only This article is for general informational purposes. HECS-HELP repayment obligations depend on individual circumstances, and thresholds, rates and indexation are updated by the ATO each year. CheckRate does not provide financial or tax advice. The ATO's study and training loan repayment calculator and registered tax agents can provide guidance based on individual circumstances. ## References 1. 1 [**ATO: Study and training loan repayment thresholds and rates**](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds), last updated 30 June 2026. 2. 2 [**ATO: Study and training loans, what's new**](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new), last updated 5 February 2026. 3. 3 [**ATO: Study and training loan indexation rates**](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-indexation-rates), last updated 17 April 2026. 4. 4 [**Department of Education: HELP indexation and debt reduction**](https://www.education.gov.au/higher-education-loan-program/help-students/help-indexation-and-debt-reduction), accessed July 2026. 5. 5 [**Department of Education: 2026 indexed rates**](https://www.education.gov.au/download/19201/2026-indexed-rates/41481/document/pdf), funding clusters and student contribution amounts, 2026 calendar year. 6. 6 [**Parliamentary Library: HELP debt, the evolution of higher education contributions**](https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Research/FlagPost/2023/June/HELP-debt), published June 2023. 7. 7 [**The Australia Institute: University is expensive**](https://australiainstitute.org.au/wp-content/uploads/2024/11/P1736-University-is-expensive-Web-1.pdf), discussion paper, published October 2024. 8. 8 [**QILT: 2024 Graduate Outcomes Survey National Report**](https://www.qilt.edu.au/docs/default-source/default-document-library/2024-gos-national-report.pdf), covers graduates surveyed in 2024. 9. 9 [**data.gov.au: Study and Training Support Loans dataset**](https://data.gov.au/data/dataset/higher-education-loan-program-help), Australian Taxation Office, updated 10 September 2025. ## Data Snapshots ![minimum hecs help repayment threshold](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/minimum-hecs-help-repayment-threshold-l43z.jpg) minimum hecs help repayment threshold ![average time to repay help debt](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/average-time-to-repay-help-debt-36y8.jpg) average time to repay help debt ## Related research [ ![How much have insurance premiums increased in Australia?](https://images.unsplash.com/photo-1637763723578-79a4ca9225f7?q=80&w=871&auto=format&fit=crop&ixlib=rb-4.1.0&ixid=M3wxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8fA%3D%3D) Spending 20 July 2026 · 11 min read ### How much have insurance premiums increased in Australia? 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