Bill to Reduce Student Debt Now Law

additionaccounting
Sep 1
1 min read

The Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025 (‘the Act’) has officially received Royal Assent, meaning it is now law.

This Act delivers on the 2025/26 Federal Budget announcement to reduce student debts, introducing several important changes that may benefit clients with existing student loans:

One-off 20% debt reduction: A 20% cut will apply to all HELP debts and other student loans incurred on or before 1 June 2025.
Higher repayment threshold: The minimum repayment threshold will increase from $54,435 in 2024/25 to $67,000 in 2025/26, with future increases indexed to wage growth.
New marginal repayment system: Compulsory student loan repayments will now be calculated only on income earned above $67,000, rather than as a percentage of total repayment income.

These updates mark a significant step toward easing the financial pressure on graduates.

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Bill to Reduce Student Debt Now Law

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