Australian HELP repayment decision tool
HELP Debt and Pay-Rise Impact Calculator Australia 2026–27
See how much of a pay rise reaches your bank account after income tax, Medicare and the current marginal HELP repayment formula.
Estimated result
Enter your details to compare the scenarios.
How the 2026–27 marginal HELP system works
Compulsory repayments begin when repayment income exceeds $69,528. The first marginal band charges 15 cents for each dollar above that threshold. Above $129,717, the calculation adds $9,028.35 plus 17 cents for each dollar above $129,717. From $186,051, the compulsory repayment is 10% of total repayment income.
This structure removes the old cliff effect where a higher percentage could apply to the entire repayment income after crossing a threshold. A pay rise can increase the compulsory repayment, but it does not leave the person with less take-home pay solely because a threshold was crossed.
Repayment income is broader than salary
The ATO’s repayment income can include taxable income plus reportable fringe benefits, reportable super contributions, exempt foreign employment income and net investment losses. The adjustment field lets you test those items separately from taxable salary.
Compulsory and voluntary payments are different
A voluntary repayment reduces the outstanding balance when processed. It does not replace a compulsory repayment assessed for the same income year. A person considering a voluntary payment should compare the expected indexation saving with emergency savings, higher-interest debt, home-deposit goals and other uses of cash.
What the take-home estimate includes
The calculator applies the 2026–27 resident income-tax brackets, a standard 2% Medicare levy estimate and the HELP formula. It does not include offsets, deductions, Medicare levy reductions, private-health surcharge, payroll timing or employer withholding tables.
Useful stress tests
- Add reportable salary-sacrifice contributions to repayment income.
- Compare no voluntary payment with a payment made before indexation.
- Run the calculation using bonus or overtime income.
- Keep the new salary but increase other investment income.
- Check the result against the ATO assessment after lodging.
How the 2026–27 HELP estimate works
The calculator applies the 2026–27 marginal compulsory-repayment formula to repayment income. No compulsory repayment is estimated at or below the first threshold. Above it, only the income within the relevant band is used in that band’s formula, subject to the high-income cap. This is different from the older system where a percentage could be applied to the full repayment income.
The calculator then estimates resident income tax using the 2026–27 brackets and adds a standard 2% Medicare levy assumption. It compares the current and proposed salaries so the output shows the extra take-home amount, the change in HELP and the amount of the gross raise absorbed by tax, Medicare and HELP.
Repayment income can be higher than salary
HELP repayment income is not always the base salary printed on an employment contract. Reportable fringe benefits, reportable employer super contributions, net investment losses and some foreign income can affect the figure used by the ATO. The adjustment field exists so these items are not forced into salary.
A bonus, overtime or a second job may also lift annual repayment income even when regular payroll withholding was based on a lower salary. Use an annual estimate and update it when income changes. The ATO determines the final compulsory repayment after the tax return, not each pay cycle.
Why crossing a threshold does not erase a pay rise
Under a marginal formula, moving above a threshold applies the next calculation only to the relevant additional income. It does not make every earlier dollar subject to the new rate. Tax and HELP can absorb part of a raise, but a larger gross salary still increases estimated take-home pay when the inputs are otherwise unchanged.
For example, moving from $90,000 to $100,000 increases gross income by $10,000. The calculator separately measures the extra income tax, Medicare levy and HELP repayment. The remaining amount is the estimated annual take-home increase. Use the monthly and weekly equivalents when deciding whether the raise covers commuting, childcare or other costs attached to the new role.
Withholding and the final assessment are different
Employers can withhold additional amounts when an employee declares a study or training loan, but withholding is only a credit toward the final tax assessment. If total repayment income differs from the payroll assumption, the final compulsory repayment can be higher or lower. A second job can be particularly important because neither employer necessarily sees the complete annual income picture.
Do not treat the calculator’s compulsory repayment as a pay-cycle deduction schedule. It is an annual estimate designed to explain the effect of a salary change. For payroll withholding, use the current ATO withholding tools and declarations.
Voluntary repayments and indexation
A voluntary payment reduces the loan balance but does not normally replace the compulsory repayment created by that year’s income. The balance projection therefore deducts the voluntary amount, applies the entered indexation assumption and then deducts the estimated compulsory repayment. Timing can affect the real balance because indexation and assessment occur on specific dates.
Paying the debt early can reduce future indexation and remove compulsory repayments once the balance is cleared, but it also uses cash that could remain in an offset account, emergency fund or investment. The calculator shows the balance effect; it does not decide which use of cash is best.
Use three salary cases
- Enter the current confirmed salary and repayment-income adjustments.
- Enter the proposed salary including expected bonus or overtime.
- Run a lower and higher adjustment case to capture reportable items that may change.
Save the annual take-home increase and compare it with the real costs of earning the higher salary. A pay rise can be financially positive while still being unattractive after extra travel, unpaid hours or lost benefits.
Limits of the estimate
The estimate excludes offsets, levy reductions or exemptions, Medicare levy surcharge, private health effects, residency complications and detailed tax deductions. It also relies on the entered HELP balance and indexation assumption. Use the result as a planning estimate and confirm the final position through the ATO or a registered tax professional.
Information to keep with the estimate
Save the current and proposed remuneration documents, the most recent HELP balance, expected bonus or overtime, and the repayment-income adjustment used. Note whether the salary is inclusive or exclusive of employer super and whether any salary packaging changes the reportable amounts. Re-run the estimate after the final payslip for the income year if income has moved materially.
When comparing two jobs, pair this result with the job-offer calculator. A larger take-home figure can be offset by longer hours, unpaid overtime, commuting, childcare or the loss of employer benefits. HELP is one part of the decision, not the whole reason to accept or reject a raise.
Official sources and review notes
This calculator is general information. The calculations use the assumptions shown on the page and do not determine legal status, eligibility, tax outcomes, lending approval or financial-product suitability.
- ATO — Study and training loan thresholds — Official 2026–27 thresholds and marginal rates.
- StudyAssist — Loan repayments — Official explanation of compulsory and voluntary repayments.
- ATO — Australian resident tax rates — Tax brackets used by the estimate.
Related calculators and guides
Frequently asked questions
What is the HELP repayment threshold for 2026–27?
The minimum repayment income is $69,528 for 2026–27.
Can a pay rise reduce my take-home pay because of HELP?
The marginal system means extra HELP applies progressively. A higher salary still increases take-home pay, although part of the raise is used for tax, Medicare and HELP.
Does salary sacrifice reduce HELP repayment income?
Reportable super contributions can be added back when repayment income is calculated, so salary sacrifice may not reduce HELP in the same way it reduces taxable income.
Does a voluntary repayment reduce the compulsory amount?
No. Voluntary repayments are additional and generally do not reduce the compulsory repayment assessed for the year.
Does this estimate employer withholding exactly?
No. It estimates the annual outcome. Payroll withholding can differ during the year and is reconciled when the tax return is assessed.