HECS-HELP debt for teachers: what you'll repay in 2026–27

The 2026–27 repayment thresholds

From 2025–26, HELP compulsory repayments work like income tax: you repay a percentage of the income above a threshold, not a percentage of all your income. The top band is the exception, where 10% applies to your total repayment income. The same thresholds apply to HELP, VET Student Loans, SFSS, SSL, ABSTUDY SSL and AASL.

What teachers repay at each step

Repayment income: why salary sacrifice doesn't help

HELP isn't worked out on your salary alone. It's worked out on repayment income, which is:

• your taxable income, plus
• reportable fringe benefits (salary packaging shown on your income statement), plus
• reportable super contributions (salary sacrifice and personal deductible contributions), plus
• total net investment losses (for example, negative gearing), plus
• exempt foreign employment income.

So salary sacrificing $10,000 into super lowers your income tax, but your HELP repayment stays exactly the same. Our tax engine shows a NSW Step 3 teacher's repayment is $5,194 with or without a $10,000 sacrifice. Ordinary tax deductions, such as union fees and the new $1,000 standard deduction, do lower repayment income, because they lower taxable income.

Indexation and the 20% cut

Your HELP balance is indexed every 1 June. Since the 2023 changes, the rate is the lower of CPI and the Wage Price Index. On 1 June 2026 it was 2.8%. There's no interest beyond indexation.

Separately, the Universities Accord (Cutting Student Debt by 20 Per Cent) Act cut HELP and other study loan balances by 20%, calculated on balances as at 1 June 2025 and applied before that year's indexation. It received Royal Assent on 2 August 2025 and the ATO applied it in stages from November 2025. You didn't need to apply. Check your balance in myGov (ATO account) to confirm it shows.

How long until a teacher's HELP debt is gone?

With the marginal system, repayments are smaller early in your career and grow as you move up the steps. Here's a rough illustration for a NSW graduate.

Should a teacher make voluntary repayments?

This depends on your situation, and it's worth getting personal advice if the amount is large. The trade-offs are clearer than they used to be:

Note the timing: in 2026, voluntary repayments had to be made by 26 May to beat the 1 June indexation. Check the cut-off date each year on the ATO or StudyAssist sites.

HELP debt relief for teachers in Very Remote areas

Teachers who work in an ABS 'Very Remote Australia' area can have part of their HELP debt reduced. The reduction is the lesser of the HELP debt from your initial teacher education qualification and your outstanding debt when you started eligible teaching. Indexation is also waived while you're teaching in eligible service.

Some states add their own help. NT offers up to $3,000 HELP reimbursement for new recruits, and Queensland's RoRRS package includes HELP debt reduction in very remote locations. See HECS debt relief for remote teachers.

HELP when you change jobs, go part-time or move overseas

• Part-time: at 0.6 FTE of NSW Step 3 ($62,494) you're under the threshold and repay nothing compulsory that year. Your balance is still indexed.
• Parental leave: a year on leave without pay, or with only government Parental Leave Pay, can drop you under the threshold.
• Two jobs: tell every employer about your HELP debt on your TFN declaration, or too little may be withheld and you'll get a bill.
• Moving overseas: HELP obligations continue. If you leave Australia for more than 183 days in a 12-month period, you must keep the ATO updated and report your worldwide income each year.