Overview

• From mid-November, the ATO will apply the one-off 20% reduction, with about half of eligible accounts updated by the end of November and the remainder by mid-December.
• The cut is based on balances as at 1 June before the June indexation, and indexation will be recalculated on the reduced amount.
• Roughly three million Australians are eligible, and the ATO will notify borrowers by text message or email once their balance is updated.
• Someone with the average HECS/HELP balance of about $27,600 will have approximately $5,520 wiped from their debt.
• The ATO estimates the combined effect of the reduction and recalculated indexation will lower total student loan debt by about $20 billion, and the July legislation also lifted the minimum repayment threshold to around $67,000.