More than 3 million Australians will have their student debt cut by 20 per cent by the end of next week, wiping almost $16 billion in total.
Today alone, more than 1.5 million Australians will see their student debts cut by 20 per cent. That’s around half of all people with a student debt.
It continues the ATO’s roll out of the Albanese Labor Government’s cut to student debt.
For someone with the average HELP debt of $27,600 this will see around $5,520 wiped from their debt.
Backdated to 1 June 2025 before the last indexation, it will reduce the burden for Australians with a student debt – including HELP, VET Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.
Australians do not need to do anything to receive the one-off reduction, it will happen automatically.
In addition to cutting student debt by 20 per cent, we have also raised the minimum amount people earn before they have to start making repayments from $54,435 to $67,000. We have also reduced minimum repayments.
For someone earning $70,000 it has reduced the minimum repayments they have to make by $1,300 a year.
This builds on our reforms to fix the indexation formula, which has already cut more than $3 billion in student debt.
This means all up, the Albanese Labor Government is cutting close to $20 billion in student debt for more than three million Australians.
Quotes attributable to Prime Minister Anthony Albanese:
“This is another way my Government is continuing to deliver cost of living relief to Australians.
“Our Government promised to cut student debt, it was the first thing we did after the election in Parliament, and now we’re rolling it out.
“Getting an education shouldn't mean a lifetime of debt.
“No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.”
Quotes attributable to Minister for Education Jason Clare:
“We promised it, Australia voted for it, and now it’s happening.
“This is the biggest cut to student debt in Australian history.
“It means millions of young Australians will have thousands of dollars taken off their back.”
Quotes attributable to Minister for Skills and Training Andrew Giles:
“We want Australians to get the skills they want, for the jobs our country needs.
“The student debt cut means students and apprentices will have more money in their pocket and less stress to pursue qualifications for their future.
“Students and apprentices have told me time and time again about how big a difference this will make in their lives.”
Quotes attributable to Assistant Treasurer Daniel Mulino:
“The ATO is rolling out the biggest cut to student debt in Australia’s history.
“It means billions wiped from the debts of young people when they need it.
“This will make a big difference as they get started in their lives.”