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HELP Repayment on $120k: How Much Does Your Debt Cost?

At $120k you're in the first HELP repayment tier (marginal 15% on income above $69,528). Your estimated annual HELP repayment is $7,571, or roughly $291 per fortnight withheld by your employer. This is a real reduction in take-home pay that many graduates don't fully appreciate until they see their first payslip after crossing the threshold.

The 2026-27 HELP system uses a marginal approach: you only pay the higher rate on income above each threshold, not on your entire salary. At ~15% marginal, the repayment is manageable but meaningful. The comparison below shows exactly how much less you take home with a HELP debt versus without — and can help you decide whether voluntary repayments or salary sacrifice strategies make sense.

02 —RESULTS
Baseline annual take-home$91,400.00No HELP debt
Alternate annual take-home$83,979.20With HELP debt
Annual delta-$7,420.80less cash retained
Decision read

The alternate setup reduces take-home pay in a noticeable way.

This may still be worth it, but the non-cash benefits need to outweigh the drop in annual cash.

01 —INPUTS
Baseline

No HELP debt

Direction
Alternate

With HELP debt

Direction
Result

No HELP debt

$91,400.00
Annual gross$120,000.00
Standard work deduction$1,000.00
Taxable income$119,000.00
Income tax + levies$28,600.00
HELP repayment$0.00
Take-home pay$91,400.00

Monthly cash flow: $7,616.67

Effective rate: 23.8%

The enacted work-expense standard amount contributes $1,000.00 to tax deductions in this employee estimate.

Result

With HELP debt

$83,979.20
Annual gross$120,000.00
Standard work deduction$1,000.00
Taxable income$119,000.00
Income tax + levies$28,600.00
HELP repayment income$119,000.00
HELP repayment$7,420.80
Take-home pay$83,979.20

Monthly cash flow: $6,998.27

Effective rate: 30.0%

HELP repayment income is $119,000.00 after adding reportable salary-sacrifice contributions back to taxable income.

HELP repayments reduce annual take-home by $7,420.80 in this setup.

The enacted work-expense standard amount contributes $1,000.00 to tax deductions in this employee estimate.

03 —BREAKDOWN
Why the result moves

Compare the cash outcome, then inspect the structural reason

With HELP debt changes annual take-home by -$7,420.80 compared with No HELP debt.

With HELP debt changes tax and levy outflow by +$7,420.80.

Use this view to judge whether HELP, sacrifice, residency, or private health settings change cash pay enough to matter.

Edit inputs ↑

Frequently asked questions

How much is the HELP repayment on a $120k salary?
At $120k your estimated HELP repayment is $7,571 per year, or about $291 per fortnight. The 2026-27 system uses marginal rates — you pay ~15% marginal — so crossing a threshold doesn't mean your entire income is subject to the higher rate.
Does HELP repayment come out before or after tax?
HELP repayments are calculated on your Repayment Income (which includes taxable income and a few add-backs) and withheld from your after-tax pay. They are not a tax deduction — they're a debt repayment. Your employer withholds an estimate each pay cycle, and any over- or under-payment is reconciled when you lodge your tax return.
Can I reduce my HELP repayment through salary sacrifice?
No. Reportable employer super contributions (including salary sacrifice amounts) are added back to your income when calculating HELP Repayment Income. So salary sacrifice won't reduce your HELP obligation. However, it can still reduce your income tax — the two are calculated on different bases. If your goal is to minimise total deductions from pay, focus on voluntary HELP repayments when you have spare cash, as they reduce the indexed balance directly.

Want the full picture?

Read our in-depth guide to understand the methodology, edge cases, and planning strategies behind this comparison.

Read the guide →

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Every income in this comparison: $60k · $70k · $80k · $90k · $100k · $150k

See also

HELP repayment thresholds 2025–26 Every income threshold, marginal rate, and edge case in one page. Full HELP/HECS repayment rates 2026–27 Official ATO rate schedule for this financial year.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.

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