Question 1

How are HELP repayments calculated in 2025-26?

Accepted Answer

From 2025-26, HELP repayments use a new marginal rate system. No repayment is required below $67,000. Between $67,001 and $125,000, you pay 15% on income above $67,000. Between $125,001 and $179,285, you pay $8,700 plus 17% on income above $125,000. Above $179,286, you pay 10% of your total income.

Question 2

What is repayment income for HELP?

Accepted Answer

Repayment income is your taxable income plus any net investment losses, reportable fringe benefits, reportable super contributions, and exempt foreign employment income. It is not just your salary — the ATO uses a broader measure to determine your repayment obligation.

Question 3

When are HELP repayments deducted?

Accepted Answer

Your employer withholds compulsory HELP repayments from each pay, similar to income tax. The actual repayment is assessed when you lodge your tax return. If your employer has withheld too much or too little, it is adjusted at tax time.

Question 4

What is indexation and how does it affect my balance?

Accepted Answer

Each year on 1 June, the government applies indexation to your HELP balance based on the Consumer Price Index (CPI). This means your debt grows each year even as you make repayments. The indexation rate varies — it was 7.1% in 2023 and around 3-4% in typical years.

Question 5

Can I make voluntary repayments to pay off my HELP debt faster?

Accepted Answer

Yes, you can make voluntary repayments at any time through myGov or by contacting the ATO. Voluntary repayments reduce your balance and therefore reduce the indexation charged. There is no minimum voluntary repayment amount. Note: the government removed the 5% bonus for voluntary repayments of $500+ from 1 January 2022.

Question 6

What happens to my HELP debt if I go overseas?

Accepted Answer

If you move overseas, you are still required to make repayments. From 2017-18, Australian residents overseas must lodge a worldwide income return and make repayments based on their total worldwide income. Failure to lodge can result in penalties.

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