Legislation introduced to reduce student loan debts

This content was published on Wednesday 23 July 2025. There may be more recent updates available.

The Australian Government has introduced new legislation to reduce the Higher Education Loan Program (HELP) debt by 20%.

Once legislation passes the reforms will deliver:

  •  A one-off 20% reduction in HELP and student loan balances, effective from 1 June 2025
  • Lower repayment amounts, making it easier to manage ongoing costs
  • Higher income thresholds before repayments are required, allowing graduates to keep more of their earnings 

The ATO will retrospectively apply the 20% reduction and the indexation that was applied will be adjusted.

For more information visit: FAQs - 20% reduction off all outstanding HELP loan debt