How the new marginal system works
| Repayment income | You repay |
|---|---|
| Up to $69,528 | Nothing |
| $69,528 – $129,717 | 15c for every $1 over $69,528 |
| Over $129,717 | $9,028 + 17c for every $1 over $129,717 |
| Any income | Capped at 10% of repayment income |
This replaced the old whole-of-income tiers, and the difference matters: previously, earning one dollar over a threshold applied a higher percentage to your entire income, so a small pay rise could genuinely shrink your take-home pay. Under the marginal system only the income above each threshold counts — a raise always leaves you ahead.
Three recent changes every graduate should know
First, all HELP balances were cut by 20% in 2025 — check your myGov balance if you haven't lately. Second, annual indexation now uses the lower of CPI and wage growth, ending the 2023-style indexation spikes. Third, "repayment income" is broader than salary — it adds back reportable super contributions, fringe benefits and net investment losses, so salary sacrificing to super reduces your income tax but not your HECS repayment.
Should you pay it off early?
Usually not aggressively: HELP debt is the cheapest money you'll ever owe (indexed, not interest-bearing) and repayments stop if your income drops. The common exceptions are borrowers about to apply for a home loan — lenders treat the repayment as a fixed expense that cuts borrowing power — and small balances that one payment could clear before June indexation.