Legislation has been passed that will ease the financial pressure of student loans and help more people manage the cost of living.
The reforms will deliver:
- a one-off 20% reduction in HELP and student loan balances, effective from 1 June 2025. Someone with the average Higher Education Loan Program (HELP) debt of $27,600 will see around $5,520 wiped from their outstanding student loan.
- Lower repayment amounts, under a new marginal repayment system making it easier to manage living expenses.
- Higher income thresholds, increasing how much people can earn before repayments are required, allowing graduates to keep more of their earnings. The new repayment threshold will change from $54,435 to $67,000.
The Australian Taxation Office will retrospectively apply the 20% reduction to all student loans. The indexation that was applied on 1 June 2025 will also be adjusted.
Further information about the changes can be found at: 20% reduction of student loan debt.