Here’s everything you need to know.

How much is the cut and who will benefit?

The cut is a one-off reduction of 20 per cent on all Higher Education Loan Program (HELP) debts, including university loans, known as HECS. The cut will be backdated to balances on 1 June before indexation was applied.

The government estimates about three million Australians will see their debt reduced.

A person with an average debt of $27,600 will see $5,520 wiped.

When will my debt be reduced?

The ATO will begin applying the cut from mid-November, with about half of those with student loans to see their debt slashed by the end of the month. Most others will see the cut applied by mid-December.

Why is the debt being cut?

The government says the debt relief is about recognising the financial pressure faced by many Australians, particularly younger Australians. About 70 per cent of student debt is held by Australians aged 35 or younger.

Do I need to do anything?

No, the reduction will be automatically applied to your balance by the ATO.

Will I still receive the cut if I have paid off my loan?

If you have repaid your student loans and don’t have a debt balance as of 1 June 2025 you will not receive the cut. The reduction will only apply to debt that exists as of 1 June 2025.

How can I check my debt?

How much will it cost the government?

The government expects the reduction will wipe out about $16 billion in student debt.