The marginal system
Until 2024–25, once your repayment income passed the threshold you repaid a percentage of all of it, from 1% up to 10%. Since 1 July 2025 you repay only on the income above the threshold, like a tax band (ATO).
| Repayment income | Repayment |
|---|---|
| $0 – $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 total repayment income |
What you repay, salary by salary
| Salary | 2026–27 repayment | Share of salary | Old system (2024–25 table) |
|---|---|---|---|
| $60,000 | $0 | 0.0% | $600 |
| $70,000 | $71 | 0.1% | $1,750 |
| $80,000 | $1,571 | 2.0% | $3,200 |
| $90,000 | $3,071 | 3.4% | $4,500 |
| $100,000 | $4,571 | 4.6% | $5,500 |
| $120,000 | $7,571 | 6.3% | $9,000 |
| $150,000 | $12,476 | 8.3% | $13,500 |
| $200,000 | $20,000 | 10.0% | $20,000 |
The old-system column applies the ATO's 2024–25 table to the same salary, to show the size of the change. Thresholds are indexed every year, so the comparison is indicative.
A worked example
On a $100,000 salary, repayment income is $100,000. The first $69,528 is free, and the $30,472 above it is repaid at 15c in the dollar: $4,571 for the year, about $176 a fortnight. Take-home after tax, Medicare and HELP is $72,909.
At the margin, 30% income tax, 2% Medicare and 15% HELP mean you keep 53% of each extra dollar until the debt is repaid. Under the old system the same salary repaid $5,500, but each new dollar could push the whole income into a higher repayment rate.
What counts as repayment income
- Taxable income, plus reportable fringe benefits, plus net investment losses (including rental losses), plus reportable super contributions such as salary sacrifice, plus exempt foreign employment income.
- So salary sacrificing into super does not lower your HELP repayment, even though it lowers your tax.
- Your employer withholds an estimate from each pay; the final amount is worked out when you lodge your return.
Questions people ask
Does this change how much I owe?
No. The marginal system changes how much is taken from each year's income, which this page shows. The balance you owe and its indexation are separate.
Do I repay on super?
Your employer's 12% super guarantee is not repayment income. Extra super through salary sacrifice is.
What if I earn just over the threshold?
Under the marginal system you repay 15c of each dollar above it: at $70,528 that is $150 a year. The old system's jump at the threshold is gone.