Every figure cross-checked against the ATO

HECS tax brackets & repayment table 2026-27

Updated 20 July 2026 · marginal system (from 1 July 2025) · by Jason Jung

2026-27 HECS tax brackets

From 1 July 2025 HECS/HELP moved to a marginal repayment system — you only repay on income above the threshold, the way income-tax brackets work. That's why people now talk about "HECS tax brackets": this is the full repayment table for 2026-27.

Repayment incomeCompulsory repayment
$0 – $69,528Nil
$69,529 – $129,71715c for each $1 over $69,528
$129,718 – $186,050$9,028 + 17c for each $1 over $129,717
$186,051 and over10% of your total repayment income

→ Work out your own repayment — the calculator itemises your repayment income and applies these rates.

2025-26 rates (the return you lodge now)

Repayment incomeCompulsory repayment
$0 – $67,000Nil
$67,001 – $125,00015c for each $1 over $67,000
$125,001 – $179,285$8,700 + 17c for each $1 over $125,000
$179,286 and over10% of your total repayment income

The thresholds are indexed each year in line with average weekly earnings, which is why 2026-27's nil band ($69,528) is higher than 2025-26's ($67,000).

Weekly, fortnightly and monthly equivalents

The brackets above are annual, but withholding comes out of each pay. Dividing the 2026-27 nil threshold of $69,528 gives a rough sense of when STSL starts appearing on a payslip:

Pay cycleApprox. nil-band equivalent
Weeklyabout $1,337
Fortnightlyabout $2,674
Monthlyabout $5,794

These are arithmetic conversions, not the ATO's withholding schedules. Employers use the ATO's published weekly, fortnightly and monthly tax tables, which round differently — so your payslip won't match these to the dollar. The annual brackets are what your assessment actually uses.

If nothing is being withheld at all, there are five common reasons.

Worked example (2026-27)

Someone on a repayment income of $100,000: they're in the 15c band, so they pay 15c on each dollar above $69,528. That's 15% × ($100,000 − $69,528) = $4,570.80.

Under the old whole-of-income system the same person would have paid a flat percentage of the entire $100,000 — noticeably more. That's the practical effect of the marginal switch: smaller repayments, and often a refund this tax time because payroll withholding didn't catch up until late September 2025.

Related

Repayment calculator — enter your income and see your exact figure

How much HECS do I pay? Repayments at $60k to $200k

What counts as repayment income? The salary-packaging trap

Indexation 2026: how 2.8% is added on 1 June

About the author

Jason Jung builds and maintains HECS Check — the three calculators, the engine behind them and the writing. He's an independent web developer, not a tax agent or financial adviser, and every figure on this page is cross-checked against the ATO sources cited below. How the site is checked · report an error.

Sources: ATO — repayment thresholds and rates