The $69,528 repayment threshold for 2026-27 doesn't apply to your salary, and not to your taxable income either. It applies to repayment income, a definition designed to stop the common tax-reduction strategies from also reducing your HELP repayment. If you salary package, sacrifice super or negatively gear, this is the page for you.
The five components
| Component | What it is |
|---|---|
| Taxable income | Assessable income minus deductions, the same figure your income tax is based on (excluding any assessable First Home Super Saver released amounts) |
| + Reportable super contributions | Salary-sacrificed super and personal contributions you claim a deduction for. Compulsory 12% employer super is not included |
| + Reportable fringe benefits | The grossed-up value of salary-packaged benefits shown on your income statement, such as a novated lease car (including FBT-exempt EVs) |
| + Total net investment loss | Net losses from rental properties and financial investments, i.e. the negative-gearing deduction, added back |
| + Exempt foreign employment income | Foreign employment income that is exempt from Australian tax but still counts for repayment purposes |
The salary-packaging surprise
Salary sacrifice catches the most people. Say you earn $80,000 and salary sacrifice $10,000 into super. Your taxable income drops to $70,000, and if HECS worked on taxable income your repayment would be $70.80. But the $10,000 is added back as reportable super contributions, so your repayment income is still $80,000 and your repayment stays $1,570.80. The sacrifice saves income tax, just not a cent of HECS.
Novated leases work the same way: the pre-tax lease payments create a reportable fringe benefit, and for FBT-exempt EVs the benefit is still reportable even though no FBT is payable. The grossed-up amount lands in your repayment income, which can push up your HELP repayment even as the lease cuts your income tax. Our novated lease calculator models this interaction.
Why the definition is built this way
Each add-back closes a loophole. Without them, anyone with a HELP debt could sacrifice or gear their way below the threshold while enjoying the same standard of living, and the loudest complaints would come from people repaying nothing. The design principle is simple: money you directed somewhere by choice still counts as capacity to repay.
Where this bites at tax time
Employer HECS withholding is based on the salary that employer pays you, nothing else. If your repayment income ends up higher than your salary (reportable super, a rental loss, a second job), the withholding will have been too low and the difference arrives as a tax bill. It isn't a penalty, just the gap between an estimate and the final calculation. Check where you'll land with our HECS repayment calculator, which asks for repayment income rather than salary for exactly this reason, and see the current bands on the 2026-27 thresholds table.
Frequently asked questions
Where does the ATO get these numbers from?
Mostly from your tax return and your employer's reporting: reportable fringe benefits and reportable super appear on your income statement, and investment losses come from your return. The repayment is calculated automatically at assessment; there is no separate form.
Sources
Figures on this page come from the following primary sources. The date is when we last checked the page against the source.
- Study and training support loans rates and repayment thresholds (ATO), checked 27 July 2026.
- Reportable fringe benefits for employees (ATO), checked 25 August 2026.
Related
HECS repayment thresholds 2026-27: the bands your repayment income is measured against. Salary sacrifice calculator: the tax saving with the HECS interaction included. HECS repayment calculator: your repayment and payoff projection.
Figures current as at 6 August 2026. Definition verified against the ATO study and training support loans thresholds page; see our methodology. General information only, not financial advice.