How compulsory repayments work
Since 2025–26, repayments are only charged on income above the threshold, like a tax bracket, instead of a percentage of your whole income. For 2026–27:
- Up to $69,528: no compulsory repayment.
- $69,529 to $129,717: 15c for each $1 over $69,528.
- $129,718 to $186,049: $9,028 plus 17c for each $1 over $129,717.
- $186,050 and over: 10% of your whole repayment income.
| Repayment income | 2025–26 | 2026–27 |
|---|---|---|
| $65,000 | $0.00 | $0.00 |
| $70,000 | $450.00 | $70.80 |
| $80,000 | $1,950.00 | $1,570.80 |
| $100,000 | $4,950.00 | $4,570.80 |
| $130,000 | $9,550.00 | $9,076.11 |
| $150,000 | $12,950.00 | $12,476.11 |
| $190,000 | $19,000.00 | $19,000.00 |
In 2025–26 repayments started above $67,000. The repayment is capped at what you still owe.
What counts as repayment income
Your taxable income plus any reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign employment income. For most employees with no investments, it's simply their taxable income.
How it's collected
If you tell your employer you have a study loan on your withholding declaration, they withhold extra tax from each pay. The ATO then works out your actual repayment when you lodge your tax return, and any difference becomes part of your refund or bill. If you don't tell your employer, you'll likely owe it all at tax time: see why you might owe tax.
Voluntary repayments and indexation
You can pay extra to the ATO at any time. Debts are indexed each 1 June, by the lower of the consumer price index and the wage price index.
See your whole tax position with the tax refund calculator (turn on "HELP or study loan").