Labor promised to cut student debt and now the Albanese Labor Government is delivering.
Australians with student debt, including HECS-HELP, VET and TAFE loans, will see a 20% reduction.
No application, no forms, just real cost of living relief.
This cut to your debt balance will be applied automatically by the Australian Tax Office over the next few weeks, backdated to 1 June 2025.
This is a game-changer for more than three million Australians with student debt.
Labor is building Australia’s future.
Frequently Asked Questions
Who will receive the 20% student debt reduction?
Every Australian with a student debt, as of 1 June 2025, will receive a one-off 20% reduction, including those with:
- Higher Education Contribution Scheme (HECS)
- Higher Education Loan Program (HELP)
- VET Student Loans (VSL)
- Student Start-up Loan (SSL)
- Australian Apprenticeship Support Loans (AASL)
- ABSTUDY Student Start-up Loan
- Student Financial Supplement Scheme (SFSS)
Students who commenced study after 1 June 2025 will not receive the debt reduction
Do I need to apply for the debt reduction?
No application, no forms. You don’t need to do anything, this one-off reduction will be applied automatically by the Australian Tax Office.
When will I see the reduction applied to my student debt?
The Australian Tax Office will process changes on their end, and most people will receive their 20% cut in the next few weeks.
Not everyone will receive a reduction at the same time. However, the 20% reduction in your student debt is guaranteed. To make sure you get the full benefit of the 20% cut, it is backdated to 1 June 2025, before the most recent indexation was applied.
How will I be notified when my debt has been reduced?
After the 20% reduction is applied to your student debt, you will receive a notification by text, if your mobile number is linked to your ATO or myGov account, or by email.
How will I see how much has been wiped from my student debt?
You will be able to check how much has been wiped from your student debt by logging into your myGov account at: www.my.gov.au
How to check your student loan details
You can view the details of your loan debt by logging on to the myHELPbalance portal which can be found at www.myhelpbalance.gov.au,. You can then confirm the course, units of study and name of the provider that has been reported against your record.
Alternatively, you can view your actual student debt, indexation and repayments information online via the myGov website at www.my.gov.au
If you are unsure of your VET Student Loans debt details
Contact the Student Enquiry line on 1800 020 108 for general advice on the VET Student Loans program and the former VET FEE-HELP scheme.
Should I wait to do my tax return until after I’ve received my 20% reduction?
No. You should do your tax return as per usual. To make sure you get the full benefit of the 20% cut, it is backdated to 1 June 2025, before the most recent indexation was applied.
