Find Out the Timing and Details of Your HECS Debt Reduction

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Millions of Australians will see their student debt slashed from next month.

The federal government said the Australian Tax Office would begin applying the 20 per cent cut from mid-November, with most seeing their balances reduced by the end of the year.

Education minister Jason Clare confirmed the timeline on Sunday and said about three million Australians would benefit from the debt relief.

“We promised we would cut your student debt by 20 per cent and we are delivering,” he said.

“This cut is already locked in to people’s balances at 1 June but soon they will be able to see it and feel it.”

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.

A table showing how much Australians in each state and territory owe due to student loans and how much the average person will save from a 20 per cent cut.

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?

You can check your loan balance via the myGov website after linking your account to the ATO’s online services.

How much will it cost the government?

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

This is in addition to $3 billion that was removed after the indexation on student loans was tied to the lower of the wage price index or consumer price index.