Notification of the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2025-2026 income year
NOTIFICATION UNDER THE HIGHER EDUCATION SUPPORT ACT 2003
The following notice specifies the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2025-2026 income year. It has been made under the Higher Education Support Act 2003 (HESA). A copy of the repayment incomes and rates can be obtained from the Study Assist website at www.studyassist.gov.au or from the Director, HELP Policy team, Higher Education Division, Department of Education, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9456.
HESA section | Description |
154-10 | The minimum repayment income for the 2025-2026 income year is $56,156. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2025-2026 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$56,156 | 1.0% | 2 | More than or equal to
$64,838 | 2.0% | 3 | More than or equal to
$68,727 | 2.5% | 4 | More than or equal to
$72,852 | 3.0% | 5 | More than or equal to
$77,223 | 3.5% | 6 | More than or equal to
$81,856 | 4.0% |
|
Section | Description |
cont. | | Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 7 | More than or equal to
$86,767 | 4.5% | 8 | More than or equal to
$91,974 | 5.0% | 9 | More than or equal to
$97,492 | 5.5% | 10 | More than or equal to
$103,342 | 6.0% | 11 | More than or equal to
$109,543 | 6.5% | 12 | More than or equal to
$116,116 | 7.0% | 13 | More than or equal to
$123,082 | 7.5% | 14 | More than or equal to
$130,467 | 8.0% | 15 | More than or equal to
$138,295 | 8.5% | 16 | More than or equal to
$146,594 | 9.0% | 17 | More than or equal to
$155,389 | 9.5% | 18 | More than or equal to
$164,712 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) was enacted to provide a framework for the administration of student financial assistance programs in Australia, including the Higher Education Loan Program (HELP). This legislation aims to ensure that students have access to the necessary financial support to pursue higher education, and that the repayment system is fair and manageable for borrowers. The 2025-2026 income year notification under HESA specifies the repayment incomes and repayment rates for HELP, which are intended to adjust for inflation and changes in the average income levels of borrowers. This notification is made by the relevant authorities under the Act and can be accessed through various channels including the Study Assist website and the Department of Education. The policy objective of these provisions is to maintain an equitable and sustainable system for student loan repayments that reflects current economic conditions.
Scope and Application
The Higher Education Support Act 2003 (HESA) sets out the framework for the Higher Education Loan Program (HELP), governing the repayment incomes and rates for the 2025-2026 income year. This legislation applies to individuals who have received HELP loans and are required to repay their debts based on their income levels. The notice detailing the repayment incomes and applicable rates is made under HESA and specifies the minimum repayment income, as well as the income brackets and corresponding repayment percentages. The repayment rates escalate as income increases, starting at 1.0% for incomes of $56,156 and above, rising to 10.0% for those earning more than $164,712 annually. The Act's provisions are applicable across Australia, as it is a Commonwealth Act, and the information can be accessed from the Study Assist website, the Director of the HELP Policy team, or via a phone call to the specified number. The Act does not specify exclusions, exemptions, or thresholds beyond those outlined in the notice, and any further details or clarifications may be provided through subordinate instruments.
Key Provisions
The main sections of this legislation, C2025G00118, detail the repayment incomes and rates applicable for the Higher Education Loan Program (HELP) for the 2025-2026 income year. Section 154-10 of the Higher Education Support Act 2003 (HESA) sets out the minimum repayment income for this period, which is $56,156. Following this, Section 154-20 outlines a tiered system of percentages that apply to different income brackets. These brackets range from 1.0% for those earning more than or equal to the minimum repayment income, up to 10.0% for those earning more than or equal to $164,712. Each income bracket has a specific percentage that corresponds to it, creating a graduated scale of repayment rates based on income.
The Act imposes obligations on individuals who have taken out loans under the HELP scheme to repay their loans in accordance with the specified income brackets and percentages. These repayment obligations are calculated annually based on the individual’s income, ensuring that those with higher incomes contribute a proportionally larger amount towards their debt. The legislation requires these individuals to declare their income annually, and to make repayments based on the applicable percentage of their income as stipulated in the Act.
Failure to comply with the repayment obligations outlined in this legislation can result in several consequences. Firstly, the Act may impose civil penalties for non-compliance, which could include additional fees or interest on the outstanding debt. Secondly, there could be legal action taken against the individual to recover the unpaid amount. While specific penalties are not detailed in the provided text, under HESA, penalties for non-compliance with repayment obligations can be substantial, reflecting the importance of adhering to these requirements.