The Australian Government will cut 20% off all student loans as at 1 June 2025, before indexation is applied, to reduce the debt burden for Australians with a student loan. This measure is subject to the passage of legislation.
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Does the 20% reduction apply to me?
Once legislation passes, if you have an outstanding HELP or other student loan debt balance as at 1 June 2025, the Government will reduce your outstanding debt by 20%.
What should I consider in making a voluntary repayment before or after 1 June 2025?
When you make a voluntary repayment is up to you. You should always seek your own financial advice.
However, you may want to consider the proposed change to reduce your loan balance as at 1 June 2025 by 20% when making your decision.
It may make sense to wait until after the 20% reduction is applied. Making a voluntary repayment after 1 June 2025 will maximise the impact of your repayment and result in a greater reduction in your HELP debt.
The 20% reduction is subject to the passage of legislation.
How will this change happen?
Legislation will need to be amended.
Once legislation passes, the Government will reduce your outstanding HELP or other student loan debt by 20%.
You do not need to do anything to receive the 20% reduction.
The Australian Taxation Office (ATO) will automatically apply the 20% reduction to your ‘HELP debt account’.
Do I need to do anything to get the 20% reduction?
Once legislation passes, the Government will reduce your outstanding HELP and other student loan debt by 20%.
You do not need to do anything to receive the 20% reduction.
The Australian Taxation Office (ATO) will automatically apply the 20% reduction to your ‘HELP debt account’.
What happens now?
Before the 20% reduction can be applied, legislation needs to be amended and passed by both Houses of Parliament.
Once legislation passes, the Government will reduce your outstanding HELP and other student loan debt by 20%.
You do not need to do anything to receive the 20% reduction.
The Australian Taxation Office (ATO) will automatically apply the 20% reduction to your ‘HELP debt account’.
When will my HELP debt be reduced?
Once legislation is passed by both Houses of Parliament, the Australian Taxation Office (ATO) will automatically apply a 20% reduction to your outstanding HELP or other student loan debt as at 1 June 2025.
What if I have already paid off my HELP or other student loan debts?
If you have repaid your outstanding student loans and don’t have a student loan debt balance as at 1 June 2025 you will not receive the 20% loan reduction. The reduction will only apply to debt that exists on balances as at 1 June 2025.
How will the 20% reduction be calculated?
The Government will reduce your HELP or other student loan debt amount that is outstanding at 1 June 2025 by 20%.
You can find out how much your outstanding HELP debt will be reduced by using the 20% HELP Debt Reduction Estimator.
20% HELP Debt Reduction EstimatorWill I receive a notification of my updated HELP debt?
The Government will communicate when the 20% debt reductions have been applied. You will be able to check your HELP and other student loan debt via myGov.
Will I be advised when my 20% reduction has been processed?
The Government will communicate when the loan balances have been adjusted.
You will be able to check your HELP and other student loan debt via myGov once the reduction has been applied, to see your new loan balance.
Why is the Government doing this?
Reducing the amount of debt that people currently have by 20% means Australians will have less student debt to pay back.
This directly recognises that many Australians are doing it tough and will take pressure off the costs that Australians have to budget for.
It will particularly help younger Australians, with around 70% of people repaying a HELP debt being 35 or younger. This is a critical time for saving, considering first home buying and or supporting or starting a family.
How can I find details of my outstanding HELP and other student loan debts?
You can check your HELP and other student loan debt via myGov after linking your account to the ATO’s Online Services.
What “other student” loans are included in this change?
As well as HECS-HELP, FEE-HELP, STARTUP-HELP, SA-HELP and OS-HELP, the changes will affect all of the following student loans:
- VET Student Loans
- Australian Apprenticeship Support Loans
- Student Start-up Loan
- Student Financial Supplement Scheme