Here is everything you need to know.
How much is the cut and who will benefit?
The reduction is a one -off reduction of 20 percent on all debts of the Higher Education Loan Program (Help), including university loans, known as HECS. The cut will be reduced to balances on 1 June before the indexation was applied.
The government estimates that around three million Australians will see their debt reduced.
A person with an average debt of $ 27,600 will be wiped out $ 5,520.
When will my fault be reduced?
The ATO starts to apply the cut from mid -November, with about half of those with student loans to see their fault being reduced by the end of the month. Most others will see the cut mid -December that is applied.
Why is the debt reduced?
The government says that the debt relief is about recognizing the financial pressure with which many Australians are confronted, in particular younger Australians. About 70 percent of the student debt are in the hands of Australians aged 35 or younger.
Do I have to do something?
No, the reduction is automatically applied to your balance by the ATO.
Will I still receive the reduction when I have paid off my loan?
If you have repaid your student loans and have no debt balance from 1 June 2025, you will not receive the reduction. The reduction only applies to debts that exists from 1 June 2025.
How can I check my debt?
How much does the government cost?
The government expects the reduction to wipe out around $ 16 billion in student debt.
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