Overview
- The Australian Taxation Office has started applying the cut, with around 100,000 people receiving text or email notifications over the weekend.
- Roughly three million borrowers are expected to get the one-off 20% reduction over the next fortnight, wiping about $16 billion in debt.
- The reduction is based on pre-indexation balances as of June 1 and is applied automatically, requiring no action from borrowers.
- New rules raise the income threshold for compulsory repayments to $67,000 and reduce the minimum repayment rates.
- The government has announced a second 20% write-down to be introduced by June 1 next year, estimated at a further $16 billion.