Study-loan repayment guide
HELP Debt Repayments in 2025–26: Marginal Rates and Your Tax Return
From 2025–26, compulsory HELP and other study-loan repayments use marginal rates: the first rate applies only to repayment income above the threshold, rather than a percentage being applied to the entire amount. The repayment is still assessed through the tax system and is separate from ordinary income tax.
9 min read · Educational guidance
What changed for 2025–26
The ATO moved study and training support loan compulsory repayments to a marginal system for 2025–26. The minimum repayment threshold is $67,000, and the first rate is 15 cents for each dollar of repayment income above that threshold up to $125,000.
This removes the old cliff effect in which crossing a threshold could apply a percentage to the whole repayment-income amount. The calculation is based on the income year being lodged, so do not use 2025–26 thresholds for a different year.
- ✓ No compulsory repayment at $67,000 or less
- ✓ 15% of the amount above $67,000 in the first band
- ✓ Later bands use their own statutory formulas
- ✓ The outstanding loan balance can cap the amount ultimately payable
Example: At repayment income of $80,000, the first-band calculation is 15% × ($80,000 − $67,000) = $1,950. This is separate from ordinary income tax and Medicare levy.
Related guide: PAYG withholding vs final tax →
Compulsory repayment versus voluntary payment
Compulsory repayments are worked out through the tax return under the rules for the relevant year. Voluntary repayments are separate payments you choose to make and generally do not replace a compulsory repayment that arises from the return.
The extra amount withheld by an employer after you disclose a study loan is still withholding. It is credited in the assessment; it is not necessarily a payment applied to the loan each payday.
Related guide: Estimate your tax refund →
Why repayment income matters
Repayment income can differ from taxable income. Depending on your circumstances, it can include taxable income plus specified adjusted amounts such as reportable fringe benefits, reportable super contributions, net investment losses and certain foreign employment income.
A simple calculator that only asks for salary and deductions cannot model every adjustment. Treat its HELP result as a planning figure rather than a final assessment.
Example: Two people with the same taxable income may have different repayment income if one has reportable fringe benefits or a net investment loss adjustment.
Related guide: Medicare levy explained →
Why HELP can reduce a refund
If the final compulsory repayment is larger than the extra withholding available to cover it, the repayment can reduce an expected refund or create an amount owing. This is common when income changes, there are multiple jobs, or payroll did not know about the debt.
- ✓ Check that your withholding declaration is current
- ✓ Include all jobs in the annual estimate
- ✓ Allow for relevant repayment-income adjustments
- ✓ Do not count super guarantee as tax withheld
Using the calculator step by step
Enter gross salary, net business income and other taxable income, then enter eligible deductions and PAYG tax already withheld. Select the HELP option to add the 2025–26 compulsory-repayment estimate to income tax and Medicare levy.
The tool uses calculated taxable income as a proxy for repayment income. It does not collect reportable fringe benefits, reportable super contributions, net investment losses or exempt foreign employment income, so users with those adjustments should calculate repayment income separately and confirm the result with the ATO.
- ✓ Use annual—not monthly—figures
- ✓ Enter PAYG withholding separately from income
- ✓ Select HELP only for an outstanding study or training loan
- ✓ Read the HELP line separately from the refund or amount owing
Frequently asked questions
Is HELP repayment part of income tax?+
It is assessed through the tax system but shown as a separate compulsory repayment obligation.
What is the HELP threshold for 2025–26?+
The minimum compulsory-repayment threshold is $67,000 of repayment income. The first marginal rate applies only to the amount above that threshold.
Why did HELP turn my refund into an amount owing?+
The compulsory repayment may exceed the additional withholding available to cover it.
Does a voluntary HELP payment cancel the compulsory repayment?+
Not generally. Voluntary and compulsory repayments operate separately under ATO rules.
Official sources and important note
This guide provides general educational information, not personal tax advice. Confirm current rules with the ATO or a registered tax agent before lodging.