In a major cost-of-living relief measure, the Federal Government will apply a one-off 20% reduction to all outstanding HELP and related student loan balances as at 1 June 2025.
This reduction will be applied automatically by the ATO and covers a wide range of loan types including:
You don’t need to do anything to receive the reduction. Once the legislation passes and receives Royal Assent, the ATO will update loan balances accordingly. The 20% reduction will be applied before indexation is calculated, meaning borrowers will benefit from a lower indexed amount going forward.
This change may provide welcome relief for anyone managing student loan debts, and for anyone factoring HELP liabilities into financial planning, lending capacity or cash flow management. Those with larger student loan balance could see thousands of dollars wipe for their loan – without lifting a finger.
The information contained on this website and in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website and in this article are of a general nature only and are based on our interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
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