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For 2026–27, the domestic income-based formula for a HECS-HELP, FEE-HELP, VET Student Loan or SFSS debt begins once repayment income passes $69,528, subject to the Medicare-levy exception. The income-based formula is 15% of the income above $69,528, $9,028 plus 17% of the income above $129,717, then 10% of your total repayment income once it passes $186,050. The compulsory amount is the least of that income formula, 10.0% of repayment income and your repayable debt. Overseas-debtor obligations use separate worldwide-income rules. Your balance is indexed each 1 June at the lower of CPI and the Wage Price Index; it carries no interest.
For a domestic assessment, the income formula can apply when repayment income exceeds the minimum threshold and you had an accumulated HELP debt on 1 June immediately before assessment, unless the Medicare levy exception applies. The amount is limited by the income formula, the statutory repayment-income cap and repayable debt. Overseas debtors have a separate levy based on assessed worldwide income. PAYG amounts withheld by your employer are reconciled when you lodge your tax return.
HELP debts don't attract interest in the usual sense, but they are indexed once a year (each 1 June) to help maintain their value against inflation, based on the lower of CPI or the Wage Price Index.
Voluntary repayments reduce repayable debt. A compulsory repayment is separately limited by the income formula, the statutory repayment-income cap and repayable debt.
Your employer may withhold an additional amount each pay cycle when your declaration indicates a study loan. The final domestic amount depends on the annual assessment, including the Medicare levy exception and the repayable-debt cap. Overseas-debtor obligations are assessed separately.
Not your salary alone. The ATO uses your repayment income, which is your taxable income (disregarding any assessable First Home Super Saver released amount) plus any reportable fringe benefits, reportable super contributions, total net investment loss and exempt foreign employment income. Reportable super contributions cover both salary sacrificed employer contributions and personal contributions you claim a deduction for. That is why a compulsory repayment can appear even when your salary looks like it sits under the threshold: sacrificing into super lowers your taxable income but is added straight back for this purpose.
Yes. The obligation follows the debt rather than your address. If you intend to live overseas, or already do, for 183 days or more in any 12-month period, you must submit an overseas travel notification and update your contact details within 7 days of leaving Australia. After that you have an annual obligation either way: report your worldwide income to the ATO by 31 October, or lodge a non-lodgment advice if it is at or below 25% of the minimum repayment threshold. A repayment is worked out once your worldwide income passes the same threshold that applies in Australia.
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